Cytori to buy proprietary nanoparticle development platform

USA-based Cytori Therapeutics’ (Nasdaq: CYTX) shares jumped 7.9% to $1.78 Thursday after the company announced an asset purchase deal for up to $170 million in total.

Cytori will acquire from privately-held Azaya Therapeutics its nanoparticle cancer drug candidates which have considerable revenue-generating prospects with worldwide licensing in the near-term. The first is ATI-0918, a nanoparticle liposomal formulation of doxorubicin hydrochloride for treating breast cancer, Kaposi’s sarcoma, multiple myeloma and ovarian cancer. The other is ATI-1123, another nanoparticle-stabilized liposomal formulation of docetaxel intended to treat solid tumor cancers of patients who have failed other therapies. Post acquisition, Cytori will proceed with Phase II clinical studies of the drug.

The acquisition is subject to customary closing conditions, including obtaining third party consents and approvals and obtaining the approval of Azaya’s stockholders, and is expected to close on or prior to February 28, 2017. The acquisition, if consummated, would provide Cytori with a proprietary liposomal nanoparticle technology platform that would expand and complement the company’s leadership position in regenerative medicine.