Angiotech opts out of cardiovascular cell therapy program with Athersys

Regenerative medicines firm Athersys (Nasdaq: ATHX) says that Canada’s Angiotech Pharmaceuticals (TSX: ANP) has pulled out of its co-development of cell therapy in the cardiovascular field. As a result of the mutual termination, Athersys says it has regained all rights in its MultiStem cardiovascular program, allowing it greater flexibility in clinical development and the opportunity to pursue new business collaborations.

"Angiotech has been an enthusiastic and committed partner in working with us to advance MultiStem into clinical development for treating damage from acute myocardial infarction (AMI). Subsequent to their completion of a recapitalization and balance sheet restructuring necessitated by unexpected liquidity and business challenges, Angiotech's management and board of directors has elected to focus in the immediate term on certain core medical device business efforts. Angiotech understands how important this program is to us, and by negotiating the return of full control of clinical development in AMI and other indications, it creates the opportunity for us to continue advancement of the programs and explore cardiovascular and more comprehensive collaborative development and commercialization arrangements with other potential partners," said William Lehmann, president and chief operating officer of Athersys.

Through the termination, Angiotech will have no further funding obligations as relates to these programs. As a result, the termination would affect Athersys' future costs of development for ongoing cardiovascular programs, such as AMI, it also removes a significant encumbrance affecting Athersys' business development opportunities with other pharmaceutical, biotechnology and medical products companies.