Cardium Therapeutics Inc. has entered a strategic collaboration and funding arrangement with Shanxi Taxus Pharmaceuticals Co. Ltd. of China to support the worldwide clinical and commercial development of San Diego-based Cardium’s regenerative medicine therapeutics products.
As part of the collaboration, Cardium will change its name to Taxus Cardium Pharmaceuticals Group, the company said. Cardium (OTC: CRXM) said its stock symbol will remain unchanged. Cardium voluntarily delisted from the New York Stock Exchange recently and rejoined the over-the-counter market.
The deal includes funding in the form of direct investments in Cardium of up to $5 million to support commercialization of Cardium’s products. Stock acquired by Taxus in connection with the strategic alliance will be bought at a premium above the then-prevailing average market price of Cardium’s common stock. Cardium obtained an initial tranche of funding pursuant to the agreement by selling about 714,000 shares of common stock at 70 cents per share. Future tranches of up to $4.5 million would be sold at a 10 percent premium to the then-prevailing market price, based on a 30-day trailing average.
According to Cardium, the strategic collaboration should support the development of its products, including those for wound care and cardiovascular indications, and it provides new opportunities to explore commercialization of its products for the emerging advanced health care market in China. It could also boost Taxus oncology-focused product opportunities in the U.S. market