SYDNEY and AUCKLAND, New Zealand, April 12, 2011 /PRNewswire/ -- Living Cell
Technologies Limited (ASX: LCT; OTCQX: LVCLY), a global company
pioneering the development of a cell implant therapy to treat
diabetes, today announced that it has entered into an agreement to
raise A$3 million through a placement
of shares to Otsuka Pharmaceutical Factory, Inc. ("Otsuka"), the
research and manufacturing arm of the Otsuka group of companies.
For the placement, Otsuka will be issued 25 million shares in two
tranches at A$0.12 per share, for a
total investment of AUD $3
million.
LCT will use the proceeds from the investment to fund its
ongoing development and clinical trials of its breakthrough lead
product DIABECELL, for the treatment of diabetes.
In addition to the share investment, the parties have commenced
negotiations for a Collaborative Research and License agreement for
the research, development and commercialisation of DIABECELL in
Japan and certain other Asian
countries, excluding China where
LCT has an existing relationship with Jiangsu Aosaikang
Pharmaceutical Co. Under the terms of the pending agreement with
Otsuka, LCT and Otsuka agree to collaborate on the research,
development and commercialisation for DIABECELL for the treatment
of diabetes and its related complications in Japan and other Asian countries. The agreement
is also proposed to include a provision for LCT to grant Otsuka the
exclusive license to become the sole agency for DIABECELL
Designated Centres of Excellence (DDCE) to treat patients with
DIABECELL once the product is registered in Japan and other Asian countries covered by the
agreement. The parties expect to conclude negotiations in respect
of the agreement within the next six months.
LCT Chairman and Medical Director Professor Robert Elliott said: "We are very pleased to
welcome Otsuka as a significant shareholder of the Company and as
our partner to expand our presence in Asia. We are very excited about the
opportunities to work together with Otsuka to develop our product
for the treatment of diabetes in Japan and Asia, potentially one of the most significant
markets for us globally. Such an arrangement augments the ongoing
development progress of LCT's activities around the world.
"This is consistent with our global development and
commercialisation strategy for DIABECELL. We will begin planning
for a clinical trial in Japan,
which will be a natural and exciting extension to our Phase II
trial in New Zealand, which is
coming to conclusion. To add this new jurisdiction to our clinical
trial program will add important new data and significantly enhance
our ability to advance DIABECELL to market."
LCT Managing Director and CEO Dr Ross
Macdonald added: "The Otsuka name is widely recognised and
respected in Japan and around the
world for the quality healthcare products it develops and we are
very pleased to be partnering with such a strong healthcare
group."
Otsuka Managing Director Hiromi
Yoshikawa said: "The work that LCT has been conducting into
new treatments for diabetes is very significant and we are excited
by the opportunities DIABECELL offers for the Asian market. We
share a common vision for the treatment of diabetes and related
complications. We see DIABECELL as a very significant opportunity
to improve treatment options available in Japan and elsewhere in the world."
The Investment will be structured in two placement tranches as
follows:
Tranche 1:
$2,280,000 payable for 19,000,000
Shares to be issued as soon as practicable after receipt of the
funds, which funds must be received by LCT not later than
22 April 2011; and
Tranche 2:
$720,000, which funds must be also
be received by LCT not later than 22 April
2011, for an unsecured Mandatorily Converting Note, the
conversion of which is conditional upon shareholder approval to be
obtained at an LCT General Meeting to be called as soon as
practicable and no later than 30 June
2011. Assuming shareholder approval of the conversion of the
Note is obtained, the Note will automatically convert into
6,000,000 ordinary shares in LCT on the next business day after the
date on which shareholder approval is obtained. If shareholder
approval for the conversion of Note into Ordinary Shares is not
obtained, the Note is repayable together with interest at the rate
of 7.5% per annum on 31 December
2011.
About Living Cell Technologies - www.lctglobal.com
Living Cell Technologies (LCT) is developing cell-based products
to treat life threatening human diseases. The Company owns a
biocertified pig herd that it uses as a source of cells for
treating diabetes and neurological disorders. For patients with
Type 1 diabetes, the Company transplants microencapsulated islet
cells so that near-normal blood glucose levels may be achieved
without the need for administration of insulin or at significantly
reduced levels. The Company entered clinical trials for its
diabetes product in 2007. For the treatment of Parkinson's disease
and other neurological disorders, the company transplants
microencapsulated choroid plexus cells that deliver beneficial
proteins and neurotrophic factors to the brain. LCT's technology
enables healthy living cells to be injected into patients to
replace or repair damaged tissue without requiring the use of
immunosuppressive drugs to prevent rejection. LCT also offers
medical-grade porcine-derived products for the repair and
replacement of damaged tissues, as well as for research and other
purposes.
About Otsuka Pharmaceutical Factory -
www.otsukakj.jp/en/
Otsuka Pharmaceutical Factory, Inc., the first company in the
Otsuka Group, was established by Busaburo Otsuka in 1921.
Originally, the company manufactured and distributed industrial and
pharmaceutical chemicals. It began manufacturing intravenous
solutions such as large volume parenterals in 1946. Since that
time, Otsuka Pharmaceutical Factory has extended its operations
into a wide variety of areas such as the development of new drugs,
innovative packaging, and intravenous delivery systems.
LCT Disclaimer
This document contains certain forward-looking statements,
relating to LCT's business, which can be identified by the use of
forward-looking terminology such as "promising," "plans,"
"anticipated," "will", "project", "believe", "forecast",
"expected", "estimated", "targeting", "aiming", "set to,"
"potential," "seeking to," "goal," "could provide," "intends," "is
being developed," "could be," "on track," or similar expressions,
or by express or implied discussions regarding potential filings or
marketing approvals, or potential future sales of product
candidates. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any future results,
performance or achievements expressed or implied by such
statements. There can be no assurance that any existing or future
regulatory filings will satisfy the FDA's and other health
authorities' requirements regarding any one or more product
candidates nor can there be any assurance that such product
candidates will be approved by any health authorities for sale in
any market or that they will reach any particular level of sales.
In particular, management's expectations regarding the approval and
commercialization of the product candidates could be affected by,
among other things, unexpected clinical trial results, including
additional analysis of existing clinical data, and new clinical
data; unexpected regulatory actions or delays, or government
regulation generally; our ability to obtain or maintain patent or
other proprietary intellectual property protection; competition in
general; government, industry, and general public pricing
pressures; and additional factors that involve significant risks
and uncertainties about our products, product candidates, financial
results and business prospects. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated or expected.
LCT is providing this information and does not assume any
obligation to update any forward-looking statements contained in
this document as a result of new information, future events or
developments or otherwise.
For further information: www.lctglobal.com
At the company:
Living Cell Technologies, Ltd.
Ms Susanne Clay
Chief Business Officer
Tel: +64 9 270 7954
Mobile: +64 21 418 833
sclay@lctglobal.com
Media and investor enquiries:
NZ and Australia:
Buchan Consulting
Rebecca Wilson
Tel: +61 3 9866 4722
Mobile: +61 417 382 391
rwilson@bcg.com.au
SOURCE LCT