Sydney-based Medical Therapies Ltd has entered into an Intellectual Property Agreement with private Japanese biotechnology company Cell Signals Inc.
The deal involves the transfer of intellectual property relating to the use of a small protein called midkine and a range of anti-midkine antibodies for diagnostic as well as therapeutic applications.
Medical Therapies CEO Maria Halasz said the acquisition would involve issuing 20 million Medical Therapies shares and the payment of $1.5 million cash on settlement to Cell Signals, with the transaction being subject to shareholders’ approval.
“This acquisition adds immediate and significant value to Medical Therapies’ asset portfolio.”
“It also provides the opportunity to generate early revenues through license fees and royalties based on the number of existing collaborations,” Ms Halasz said.
Diagnostic blood tests for midkine have been successfully developed by Cell Signals for early detection of a number of cancers. These tests are currently sold to the research market in Japan and collaborations will be pursued for extending the technology and commercialising it globally.
Cell Signals has generated extensive preclinical data to date which supports the use of midkine and anti-midkine antibodies for use in a range of therapeutic applications including prevention and treatment of heart damage during myocardial infarct, treatment of solid tumors, inflammatory conditions and autoimmune diseases.
Commenting on the announcement Cell Signals CEO Dr Sadatoshi Sakuma said, “We are delighted to have the opportunity to work with the Medical Therapies team to maximise the commercial potential of our vast midkine intellectual property.”