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TICKERS: RP; REPCF

Cell Therapy Company and Chinese Firm Sign Marketing Deal

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This biotech, in Phase 1 development of regenerative technologies addressing skin and orthopedic indications, has finalized a commercialization deal with YOFOTO.

On June 11, RepliCel Life Sciences Inc. (RP:TSX.V; REPCF:OTCQB) announced it has signed agreements with YOFOTO, a Chinese company focused on beauty and lifestyle products, to market three of its therapies in China, Hong Kong, Macau and Taiwan.

In exchange for an upfront investment and milestone payments, RepliCel and YOFOTO will collaborate on the "development and commercialization in Greater China of RepliCel's tendon regeneration cell therapy (RCT-01), skin rejuvenation cell therapy (RCS-01), and its injection technology in development for dermal applications (RCI-02) (excluding hair-related treatments)."

Financial terms of the deal include the upfront investment by YOFOTO of "CDN $5,090,000 [via the] purchase of shares at CDN $0.95 per Share and will include 20% warrant coverage exercisable at CDN $0.95 per Share for a period of two years," according to the press release. "The deal structure also includes milestone payments (of up to CDN $4,750,000), sales royalties, and a commitment by YOFOTO to spend a minimum of CDN $7,000,000 on the RepliCel programs and associated cell processing manufacturing facility over the next five years in Greater China."

Commenting on the deal, RepliCel President & CEO R. Lee Buckler noted that "successful Phase 1 data" had been announced for the company's skin and tendon products. "We were committed to delivering a landmark partnership to RepliCel shareholders in 2018. The partnership with YOFOTO represents such a deal and provides RepliCel with not only an outstanding partner in Greater China but capital to move our programs forward in Europe and North America."

RepliCel also has a partnership with Japanese firm Shiseido, which is funding a Phase 2 study of RCH-01, a cell therapy addressing androgenetic alopecia, or pattern baldness, at Tokyo Medical University Hospital and Toho University Ohasi Medical Center.

YOFOTO Chairman Huang Jin Bao noted, "The RepliCel cell therapy and injection technologies focused on skin rejuvenation and tendon repair, are important building blocks in YOFOTO's strategic healthcare vision. We are pleased to have structured a deal with RepliCel which results in YOFOTO not only being a development partner and commercial licensee but also an investor committed to contributing to RepliCel's global success."

The TSX Venture Exchange and other applicable regulatory agencies must approve the terms of the agreement.

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: RepliCel Life Sciences. Click here for important disclosures about sponsor fees.
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