Monday, March 30, 2009

Korean stem cell deal nets ACT $2M in fees

By Mass High Tech staff

Advanced Cell Technology Inc. (ACT) has formed a licensing agreement with Korean stem cell company CHA Bio & Diostech Co. Ltd., which could bring in up to $1.9 million in milestone payments.

The agreement calls for ACT to license its eye disease treatment, retinal pigment epithelium (RPE) technology, to CHA Bio to develop and sell in Korea only. The milestones in which ACT would be eligible to receive almost $2 million in payments include an independent new drug application (IND) submission to the U.S. Food and Drug Administration for human use of the technology. A report earlier this month stated that the Worcester-based regenerative medicine company is finalizing preparations to file the IND for its stem-cell-based program for treating retinal diseases in the second half of 2009.

Also in March, CHA Bio contributed to a $400,000 payment to ACT for the two companies’ recently formed international joint venture called Stem Cell & Regenerative Medicine International.

The two companies formed the Worcester-based joint venture in December. Stem Cell & Regenerative Medicine intends to use Advanced Cell’s hemangioblast cell technology to develop human blood cells.