Regeneus (ASX: RGS), a clinical-stage regenerative medicine company, today announced that it will receive a milestone payment of US$1m from AGC for meeting the primary endpoints of its Phase 1 safety trial of Progenza in patients with knee osteoarthritis. The company reported on the positive results of the trial on 22 May 2017.
This milestone payment is part of the terms and conditions of the agreement between Regeneus and AGC dated 28 December 2016 for the exclusive licence of the rights to manufacture Progenza for all clinical indications in Japan. Under the Manufacturing Licence Agreement, Regeneus received an upfront payment of US$5.5m in January 2017. There are two further milestones in the agreement relating to the development and approval of Progenza in Japan with payments of US$10m in total.
Regeneus Japan Inc, a company jointly owned by Regeneus and AGC, has the exclusive rights for the development and commercialization of all clinical applications of Progenza in Japan. Regeneus Japan is in advanced discussions with potential clinical licensees of Progenza for a range of clinical indications including osteoarthritis.