Living Cell Technologies taps Japanese funding to continue research

Wednesday 19th October 2011

Living Cell Technologies, the ASX listed New Zealand diabetes treatment researcher, has secured A$25 million in funding from Japan’s Otsuka Pharmaceutical Factory to continue its work.

The Manukau-based company will set up a 50/50 joint venture with Otsuka, which will then contract with Living Cell to refine its cell-implant therapy called Diabecell, complete clinical trials, obtain product registration and bring it to market, the company said in a statement to the ASX today.

The JV will provide funding for the next three years, and Otsuka will receive Diabecell-related assets for an equivalent value, including trial contracts, patents and trademarks, and manufacturing and R&D facilities.

“With Otsuka’s investment and support together we will be able to refine the product and accelerate its registration,” Living Cell medical director Bob Elliott said. “Otsuka will bring invaluable experience and innovative ideas to market Diabecell worldwide.”

Earlier this month, Living Cell cut ties with Centocor Research & Development before the expiration of a two-year deal with the subsidiary of Johnson & Johnson. The terms of that deal gave Centocor the global license for the Living Cell diabetes treatment.

Living Cell’s Elliott said the JV is exclusively on the Diabecell product, and the biotech company will continue to work on developing immune-suppressive drugs and cell therapy for Parkinson’s and Huntington’s diseases.

In April, Otsuka took a stake in Living Cell, buying 25 million shares at 12 Australian cents apiece, giving it 7.5 percent of the company.

The stock surged 77 percent to 7.6 Australian cents on the ASX today.

BusinessDesk.co.nz

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