Mesoblast Enters Into Strategic Cardiovascular Alliance for China With Tasly Pharmaceutical Group
July 17 2018 - 6:32AM
Mesoblast Limited (Nasdaq:MESO) (ASX:MSB) today announced that it
has entered into a strategic alliance with one of China’s largest
pharmaceutical companies, Tasly Pharmaceutical Group (SHA:
600535; Tasly), for the development, manufacture and
commercialization in China of Mesoblast’s allogeneic mesenchymal
precursor cell (MPC) product candidates MPC-150-IM for the
treatment or prevention of chronic heart failure and MPC-25-IC for
the treatment or prevention of acute myocardial infarction.
Key commercial terms of the strategic alliance are
as follows:
- Tasly will receive exclusive rights and will fund all
development, manufacturing and commercialization activities in
China for MPC-150-IM and MPC-25-IC.
- Mesoblast will receive US$40 million (AUD$54 million) on
closing, comprising a US$20 million upfront technology access fee
and US$20 million in an equity purchase in Mesoblast Limited at
$1.86 per share, representing a 20% premium to a blended volume
weighted average price calculated over three months, one month and
one day.
- Mesoblast will receive US$25 million on product regulatory
approvals in China.
- Mesoblast will receive double-digit escalating royalties on net
product sales.
- Mesoblast is eligible to receive six escalating milestone
payments upon the product candidates reaching certain sales
thresholds in China.
In order to potentially expedite development and
commercialization of these cardiovascular assets, Tasly and
Mesoblast plan to leverage each other’s clinical trial results in
China and the United States and other major jurisdictions
respectively to support their respective regulatory submissions for
MPC-150-IM and MPC-25-IC.
Chairman of Tasly Pharmaceutical Group Mr Yan
Kaijing said: "We are very excited to partner with Mesoblast, the
premier cellular medicines company, to provide innovative products
that have the potential to make a major impact on the high
growth cardiovascular market in China. This aligns well with
our corporate strategy to be the lead provider of therapies for
patients with cardiovascular conditions in China.”
Mesoblast Chief Executive Dr Silviu Itescu stated:
“Tasly Pharmaceutical Group’s powerful combination of clinical,
regulatory and manufacturing expertise, together with one of the
largest commercial footprints in cardiology in China, makes it the
ideal partner for Mesoblast and opens up the China market to our
cardiovascular franchise.”
The transaction is subject to governmental
approvals from the People’s Republic of China (PRC).
Conference CallMesoblast will host
a conference call to discuss this new strategic alliance on Tuesday
July 17, 2018 at 6.30pm EDT; Wednesday, July 18, 2018 at 8.30am
AEST.
To access the call, please dial 1 855 881 1339
(U.S.), 1 800 558 698 (Australia) or +61 2 9007 3187 (outside of
the U.S. and Australia). The conference identification code is
783910. The archived webcast will be available on the Investor page
of the Company’s website – www.mesoblast.com
About Tasly Pharmaceutical
GroupTasly Pharmaceutical Group (SHA:600535) is one of the
largest pharmaceutical companies in China with more than 20 years
of operational history. Its business focuses on R&D,
manufacturing and commercialization of innovative modern
Traditional Chinese Medicine, biologics and chemical drugs in the
therapeutic areas of cardiology, metabolism and oncology. Tasly has
the only marketed biological product for cardiovascular diseases
approved in China. It has one of the largest pharmaceutical sales
and marketing teams, including 809 offices established in 29
regions covering all the main therapeutic areas, with a vast
distribution network across approximately 20,000 hospitals in
China. As of year 2017, its total annual revenues exceeded US$2.5
billion.
About Mesoblast Mesoblast Limited
(Nasdaq:MESO) (ASX:MSB) is a world leader in developing allogeneic
(off-the-shelf) cellular medicines. The Company has leveraged its
proprietary technology platform to establish a broad portfolio of
late-stage product candidates with three product candidates in
Phase 3 trials – acute graft versus host disease, chronic heart
failure and chronic low back pain due to degenerative disc disease.
Through a proprietary process, Mesoblast selects rare mesenchymal
lineage precursor and stem cells from the bone marrow of healthy
adults and creates master cell banks, which can be industrially
expanded to produce thousands of doses from each donor that meet
stringent release criteria, have lot to lot consistency, and can be
used off-the-shelf without the need for tissue matching. Mesoblast
has facilities in Melbourne, New York, Singapore and Texas and is
listed on the Australian Securities Exchange (MSB) and on the
Nasdaq (MESO).
Forward-Looking StatementsThis
announcement includes forward-looking statements that relate to
future events or our future financial performance and involve known
and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance or achievements
to differ materially from any future results, levels of activity,
performance or achievements expressed or implied by these
forward-looking statements. We make such forward-looking statements
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and other applicable federal
securities laws. Forward- looking statements include, but are not
limited to, statements about: the potential benefits of this
alliance and the parties’ ability to maintain the alliance; whether
the conditions to the transaction will be satisfied in a timely
manner, if at all; the parties’ ability to advance product
candidates into, enroll and successfully complete, clinical
studies, advance their manufacturing capabilities, and obtain
regulatory filings and approvals. There are many uncertainties and
risks that may cause our actual results, performance or
achievements to be materially different from those which may be
expressed or implied by such statements, and accordingly, you
should not place undue reliance on these forward-looking
statements. We do not undertake any obligations to publicly update
or revise any forward-looking statements, whether as a result of
new information, future developments or otherwise.
For further information, please contact:Julie
Meldrum Corporate Communications T: +61 3 9639 6036 E:
julie.meldrum@mesoblast.com Schond GreenwayInvestor
RelationsT: +1 212 880 2060E:
schond.greenway@mesoblast.com
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