It's time, page-4

Licensing deals by third parties proves the technology and puts money in the bank.  It is only a matter of time now.  I have no doubt bigger and better names than Regience are about to sign some bigger and better deals than what was pencilled in with them.  

Cynata doesn’t need to be giving away any cheap shares as a ‘sign on’ incentive for any licensees . We just need to see decent up front money, milestones and royalties as per a normal pharma transaction.

Look at the deal Healios Japan did with Athersys to license their Multistem cells earlier this year.

“ Athersys will receive an initial license fee of $15 million, as well as have the opportunity to earn milestone and royalty payments upon the successful accomplishment of specific development and commercialization objectives, including the achievement of certain sales milestones.  Development and approval milestones for stroke could total $30 million, in addition to sales milestones that could reach $185 million based on successful commercialization and the achievement of substantial sales of an approved product for treating stroke in Japan. Athersys will also receive tiered, double-digit royalties increasing into the high teens on product sales and will be responsible for providing manufactured product to Healios, subject to receiving reimbursement under a manufacturing supply arrangement. Furthermore, if Healios elects to expand the partnership following the successful completion of Athersys' ongoing clinical trial in ARDS, Athersys will receive a license expansion fee of $10 million for the exclusive rights to two additional indications in Japan, with the corresponding potential for further milestones based on successful achievement of specific development and commercialization objectives.   Under the terms of the agreement, Healios will gain exclusive rights for the development of MultiStem for treating ischemic stroke in Japan. Healios will develop and commercialize the product in Japan, and Athersys will provide the manufactured product and support to Healios, while retaining all rights outside of Japan. In addition, Healios will obtain an exclusive option for development of two additional MultiStem clinical indications in Japan”

.. oh and by the way, Athersys has a market cap of around USD200 million , and they’re still using a method needing multiple donors of bone marrow material to generate their starting material.

If the Bloomberg article posted here the day before suggests the stem cell market in Japan and globally is going to grow to $120 billion by 2030, where is that growth coming from?  A small amount of ridiculously expensive treatments, or a huge amount of very affordable treatments ??

Just do some basic maths, 1million treatments at $30,000 each is $30billion, and the company who takes a 15 % royalty on that receives $4.5billion, year after year after year.

The sky is the limit folks, this will become very hot property as partners step up in Japan and Europe  and clinical trials progress into patient cures on multiple diseases.  Not tomorrow, not next week, but it will happen.