Cytori, Olympus form joint venture to develop stem cell therapy systems

By E. Janene Geiss

Philadelphia, Nov. 4 - Cytori Therapeutics, Inc. announced Friday the formation of a regenerative medicine collaboration with Olympus Corp. to develop systems of stem and regenerative cell therapies.

The companies will form a 50/50 joint venture called Olympus-Cytori, Inc. to develop and manufacture future generation devices based on Cytori's Celution System, company officials said in a news release.

The devices will process and purify adult stem and regenerative cells residing in adipose tissue, also known as fat, officials said.

Cytori said it completed in August the development of its first generation Celution System and has submitted CE Mark applications seeking approval for the system in Europe, officials said.

"Strategically, this alignment enables the creation of a premier brand of devices for regenerative medicine to be sold by Cytori. In parallel, Cytori will increase its focus on the development of therapeutic applications for adipose stem and regenerative cells for multiple large markets," Christopher J. Calhoun, chief executive officer for Cytori, said in the release.

According to the agreement, Olympus will license its device-related technology to the joint venture and pay $30 million to the joint venture for a 50% interest.

Cytori will exclusively license its therapeutic device technology, including Celution System, and certain related intellectual property, to the joint venture and will receive an initial $11 million payment and a 50% interest in the joint venture. Upon Cytori's receipt of a CE Mark for the first generation Celution System, Cytori will receive a second $11 million milestone payment from the joint venture, officials said.

The joint venture will obtain exclusive rights to develop, manufacture and supply the devices for all therapeutic applications solely to Cytori at a formula-based transfer price and Cytori will maintain marketing rights, officials said.

Cytori is a Frankfurt, Germany, company that discovers and develops proprietary cell-based therapeutics using adult stem and regenerative cells derived from adipose tissue.

Olympus is a Tokyo-based digital camera company that also makes endoscopes, microscopes and other medical equipment developed under the concept of opto-digital technology.

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