[IPp] Success in Converting Adult Stem Cells into Insulin-Producing Cells Triggers Agreement Expansion
- To: Rachel A <email @ redacted>
- Subject: [IPp] Success in Converting Adult Stem Cells into Insulin-Producing Cells Triggers Agreement Expansion
- From: Rachel A <email @ redacted>
- Date: Fri, 7 Jan 2005 10:50:36 -0800 (PST)
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- Reply-To: email @ redacted
Converting Adult Stem Cells into Insulin-Producing Cells Triggers Agreement
Expansion05 Jan 2005
Cell therapy developer PharmaFrontiers Corp. (OTCBB:PFTR) has expanded its
intellectual property position underlying its stem cell technology by entering
into an Amended and Restated License Agreement with the University of Chicago.
This license relates to stem cell technology discovered at The Department of
Energy's Office of Science Laboratory, Argonne National Lab. The initial Argonne
research was funded by the National Institutes of Health (NIH).
"This revised license reflects new knowledge gained by the inventors in the ten
months since our initial agreement was signed, and establishes the framework for
our ongoing efforts to commercialize the technology," said PharmaFrontiers' CEO
The February, 2004 license agreement between PharmaFrontiers and the University
of Chicago called for PharmaFrontiers to transfer additional shares of stock to
the University upon achievement of certain lab testing results at Argonne
National Laboratory regarding stem cells.
The license amendment and recent success in demonstrating differentiation of
human peripheral monocyte-derived stem cells (MDSCs) into insulin-producing
cells triggered the transfer of a total of 242,688 PharmaFrontiers common shares
to the University of Chicago.
"The ability to replace failed pancreatic beta cells with adult stem
cell-derived substitutes, if ultimately shown to be effective in humans, could
lead to a new approach to the prevention and treatment of diabetes, a major
public health problem that afflicts more than 18 million Americans," McWilliams
The Amended and Restated License Agreement, as well as the original agreement,
grants PharmaFrontiers an exclusive right to technology relating to isolating
adult pluripotent stem cells from human peripheral blood, using the stem cells
to treat a wide variety of diseases as well as in diagnostic tests,
therapeutics, and storing stem cells.
The revised agreement provides for PharmaFrontiers to pay the University of
Chicago an execution fee, milestone payments, minimum royalties, a running
royalty on sales and a share of sublicensing fees.
PharmaFrontiers will be obligated to issue additional shares of its common
stock to the University of Chicago upon the later of November 30, 2005 or
completion of an anticipated financing of $10 million or more, so that upon
issuance the University of Chicago will hold 2.6% of PharmaFrontiers' shares.
In addition, under the revised license agreement, PharmaFrontiers must spend a
minimum of $2 million on related research and development by February 2006, and
an additional $4 million on related research and development by February 2008.
PharmaFrontiers' strategy is to develop and commercialize cell therapies to
treat several major disease areas such as cardiac and pancreatic conditions and
Multiple Sclerosis. The company holds the exclusive worldwide license from the
University of Chicago through its prime contractor relationship with Argonne
National Laboratory for patents relating to the use of adult pluripotent stem
cells derived from patients' own circulating blood. PharmaFrontiers also owns
patented and proprietary individualized cell therapies that are in FDA Phase
I/II human dose ranging clinical trials to evaluate their safety and
effectiveness in treating MS.
Safe Harbor Statement
This press release contains "forward-looking statements," including statements
about PharmaFrontiers' growth and future operating results, discovery and
development of products, strategic alliances and intellectual property, as well
as other matters that are not historical facts or information. These
forward-looking statements are based on management's current assumptions and
expectations and involve risks, uncertainties and other important factors,
specifically including those relating to PharmaFrontiers' ability to obtain
additional funding, develop its stem cell technologies, achieve its operational
objectives, and obtain patent protection for its discoveries, that may cause
PharmaFrontiers' actual results to be materially different from any future
results expressed or implied by such forward-looking statements.
PharmaFrontiers undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information, future
events or otherwise.
KEYWORDS: Health & Medical, Finance, Stem Cells, NIH, Houston, Texas
COMPANIES: PharmaFrontiers Corp. (OTCBB:PFTR)
Sommers & Associates
3200 Southwest Freeway, Suite 3300
Houston, Texas 77027
(713) 222-1600 ph
(713) 222-8100 fx
email @ redacted
For more information on diabetes click here.
Rachel - email @ redacted
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