Cynata signs LOIs regarding MSCs

It’s been a busy month for Cynata Therapeutics (ASX:CYP), with the stem cell company signing two letters of intent (LOI) regarding the licensing and development of its proprietary modified mesenchymal stem cell (MSC) technology, Cymerus.

Cymerus was developed by Cynata through the utilisation of an MSC precursor, called a mesenchymoangioblast (MCA), which originates from the University of Wisconsin-Madison. The MCA platform addresses a critical shortcoming in existing methods of MSC production for therapeutic use, which is the ability to achieve economic manufacture at a commercial scale.

An LOI announced last week laid down the path for a commercial transaction between Cynata and cell therapy company apceth which would see Cynata grant to apceth certain rights to develop and commercialise Cymerus. During the coming weeks, under the LOI, the management teams of apceth and Cynata will evaluate and define the key terms of an option and licence agreement.

“Cynata’s Cymerus MSC technology provides important advantages in the development of apceth’s proprietary modified MSC technologies for the treatment of cancer and other diseases, and we are very pleased to be considering this partnership,” said apceth CEO Dr Christine Günther. “apceth is already in clinical trial for advanced gastrointestinal cancer with our genetically modified MSC product and Cymerus, a truly scalable manufacturing technology for therapeutic MSCs, has the potential to provide a cost-effective, standardised and consistent off-the-shelf product.”

The news follows the announcement earlier this month that Cynata signed a separate LOI regarding a future strategic alliance with regenerative medicine company Regience for Japan and other Asian countries. Under the LOI, Regience and Cynata will evaluate and define a commercial relationship and, if appropriate, enter a strategic alliance under which Regience would license, develop and commercialise Cymerus in certain territories.

“We are very pleased to be considering a partnership with Cynata in the development and commercialisation of Cymerus, a very innovative therapeutic MSC technology,” said Regience President and CEO Masanori Murayama. “Japan is a key market for regenerative medicine and Cymerus represents a truly scalable manufacturing technology for therapeutic MSCs, which will be essential in treating major diseases.”

Cynata Therapeutics (ASX:CYP) shares rose by 8.82% to $0.37 on Thursday, 17 December, the day of the apceth announcement. They dipped slightly to $0.36 on Friday and were trading steady as of around 11 am on Monday.