fujikura exercises its option to license cellm

SYDNEY, Thursday, 18 July 2013: Cellmid Limited (ASX: CDY) has received confirmation
that Fujikura Kasei Co Ltd (Fujikura) will exercise its Option to license the midkine (MK)
diagnostic technology by paying the requisite JPY40 million (AUD 440,000) Milestone Fee.
Under the terms of the Option to License agreement, which was signed between the
companies in February 2013, Cellmid supplied Fujikura with its proprietary anti-midkine
diagnostic antibodies for validation on Fujikura’s latex platform. Proceeding to a license
agreement was conditional on Fujikura reaching accuracy of 500 picogram/ml midkine
on its latex diagnostic platform using Cellmid’s antibodies.
Fujikura has since completed this milestone, reached the required accuracy and
advised Cellmid of its intention to exercise its Option. The parties will now proceed to a
supply and license agreement for the development and marketing of multiple cancer
diagnostic products using Fujikura’s latex assay with Cellmid’s MK antibodies.
The license between the parties is expected to grant exclusive rights to Fujikura to use
Cellmid’s proprietary antibodies for latex based tests. In return, Fujikura will pay royalties
on products sold. Product development and marketing costs will be borne by Fujikura.
A latex based test with a 500 picogram/ml accuracy can be used reliably to identify
individuals with elevated midkine levels. This in turn is expected to lead to the
development of a number of cancer diagnostic products. Cellmid will support Fujikura’s
regulatory and product development programmes with its MK diagnostic expertise.
Cellmid has a highly accurate MK-ELISA already, however a latex based assay will be
suitable for commercial products, as it is widely used and accepted in pathology
laboratories. It is also preferred as it can easily be automated, reducing processing
costs.
Fujikura Kasei is one of the largest suppliers of latex particles for the medical diagnostics
industry in Japan. While traditionally servicing other industries with polymers and resins,
Fujikura has been actively expanding into medical diagnostics.
“We are pleased with the progress of our project with Cellmid and looking forward to
developing and marketing a number of cancer diagnostic products using midkine as a
key marker on our platform” said Fujikura’s Head of Medical Project Division, Dr Hideyuki