Astellas takes equity stake in Cytori as part of regenerative medicines deal

8 December 2010

San Diego, USA-based Cytori Therapeutics (Nasdaq: CYTX) and Japan’s Astellas Pharma (4503: JP) have entered into a strategic equity agreement to evaluate the potential of adipose derived stem and regenerative cells for the treatment of serious illnesses for which there is no fundamental treatment. The news sent the US firm’s shares up 17% to $6.08 in pre-market trading yesterday.

Under the terms of the accord, Astellas will purchase approximately 1.43 million unregistered shares of Cytori common stock at $7.00 per share - a premium of 35% on Monday’s closing price - for net proceeds to Cytori of $10 million. As part of the deal, Cytori granted Astellas the following additional rights:

• two year right of first refusal for a worldwide research, development and/or commercialization partnership using Cytori's products and technologies in the treatment of liver disease;

• non-voting observer seat on Cytori's board-of-directors; and

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