Local cell therapy company Cytori Therapeutics Inc. is acquiring San Antonio-based Azaya Therapeutics for up to $170 million.
The move will expand and build upon Cytori’s regenerative medicine operations, the company said in a statement.
As part of the deal, Cytori will gain Azaya’s intellectual property and two cancer drug candidates. Dr. Marc Hedrick, Cytori’s president and CEO, said the drug candidates “potentially have sizable, near-term, global licensing and revenue opportunities.”
The San Diego firm will also enter a five-year lease for Azaya’s nanoparticle manufacturing and development facility in San Antonio.
“Azaya’s technology and intellectual property present an exciting opportunity to marry Cytori’s cell therapy technology, which is currently in late-stage clinical trials, to a clinically proven and patented off-the-shelf pharmaceutical delivery system directly applicable to regenerative medicine,” Hedrick said.
Terms of the acquisition call for Cytori to issue $2 million in common stock upfront and pay off about $2 million of Azaya’s trade payables. Cytori also agreed to pay Azaya up to $16.25 million in payments tied to achieving commercial milestones and up to $100 million in royalties based on product revenues.
Should any of the candidates be licensed to a partner, Cytori agreed to pay Azaya up to $50 million in license/sale or other transfer fees.