CHA Biotech licenses out cell therapy tech to Astellas unit for $32 million

CHA Biotech said it licensed out its cell differentiation technology to Astellas Institute for Regenerative Medicine (AIRM) for $32 million.

CHA Biotech specializes in cell therapies derived from embryonic stem cells, adult stem cells and immune cells. 

AIRM is a subsidiary of Astellas, the Japan-based multinational drugmaker. It specializes in developing cell and gene therapies.

Under the contract, CHA Biotech will transfer its retinal pigment epithelial cells (RPE) and embryonic cells (blastomere) technologies to AIRM.

Based on the terms of the contract, CHA Biotech will receive $15 million in upfront payment. Milestones payments including technology fees for each stage are valued at $17 million.

Previously, CHA Biotech was granted approval from the Ministry of Food and Drug Safety in 2012 to conduct a clinical trial of transplanting retinal pigment epithelial cells to patients with dry senile macular degeneration. 

Accordingly, phase 1 and 2a clinical trials of retinal pigment epithelial cell therapy for senile macular degeneration in Korea will be terminated early, due to the technology transfer.