The sublicense, for which VistaGen Therapeutics Inc. (VTGN:NASDAQ) will receive $1.25 million upfront and the potential for additional cash infusions in milestone payments and royalties, is for stem cell technologies that will be used to advance and commercialize regenerative therapies addressing heart disease.
"VistaGen licensed exclusive rights of the cardiac stem cell technologies from University Health Network (UHN), Canada's largest research hospital, pursuant to a strategic research agreement with UHN and distinguished UHN researcher, Dr. Gordon Keller, Director of UHN's McEwen Centre for Regenerative Medicine (McEwen Centre), one of the world's leading centers for stem cell and regenerative medicine research," the company announced in a Dec. 14 press release.
Bayer AG and Versant Ventures announced the launch of BlueRock Therapeutics, a "next-generation regenerative medicine company that plans to develop best-in-class induced pluripotent stem cell (iPSC) therapies to cure a range of diseases using an industry-leading platform," on Dec. 12. Bayer and Versant seeded the new company with $225 million, "representing one of the largest-ever series A financings for a biotech company. The funds are projected to give BlueRock Therapeutics at least four years of runway."
"Accessing cell-based therapies is part of Bayer's strategy," said Kemal Malik, member of Bayer's board of management, in the Dec. 12 release. "We are launching this enterprise to develop transformative and curative therapies for patients based on the latest stem cell technology."
BlueRock will focus on regeneration of heart tissue following heart attack or in the case of congestive heart failure, both of which are leading causes of death worldwide. According to a Dec. 12 article in the Boston Globe, the company will have offices in Toronto, New York, and possibly Boston.
"We believe BlueRock will play the leading role in the advancement of potentially life-changing cardiac cellular therapies, advancing these and other ground-breaking discoveries well beyond the lab and into the clinic, while we continue to focus our efforts on advancing AV-101 through Phase 2 clinical development for major depressive disorder and other CNS indications," said VistaGen's CEO Shawn Singh in the press release announcing the license.
VistaGen also has clinical programs ongoing in major depressive disorder, as well as the potential to expand its lead compound, AV-101, into other central nervous system indications including Parkinson's disease, epilepsy and bipolar disorder.
Want to read more Life Sciences Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
Disclosures:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific analysts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
