After receiving Chinese government’s approval to overseas direct investment last month, China-based Tasly Pharmaceutical Group has secured all regulatory approvals to close the investment agreement and the development and collaboration agreement with Mesoblast to commercialize cell therapies for cardiovascular diseases in China.
The closure of this deal brings $40 million investment to off-the-shelf cellular medicines developer Mesoblast Limited (MSB) . The final strike to the transaction comes after receiving all the necessary approvals including one from Safe Administration of Foreign exchange.
In the settlement of the deal the twin listed Mesoblast will receive US$20 million for purchase of its equity by Tasly at AUD$1.86 per share and US$20 million as upfront technology fee. The offer price represents a 20% premium to a mixed volume weighted average price calculated over three months. This strategic cardiovascular alliance with one of the China’s biggest pharmaceutical company, Tasly, surely seems to widen the scope and network of Mesoblast limited in addition to bringing the fresh capital to its stable.
Under the terms of contract, Tasly will hold exclusive rights as it is funding the manufacturing, development and commercialization of MPC-150-IM and MPC-25-IC in China. Mesoblast’s MPC-150-IM is an allogeneic mesenchymal precursor cell which is used for chronic heart failure treatment while MPC-25-IC is used for the prevention or treatment of acute myocardial infarction.
The cellular medicines company Mesoblast Limited will receive double-digit royalties on net product sales. The transactional also enables Mesoblast to receive six intensifying milestone payment upon achieving threshold sales in China.
Mesoblast is an Australia-based cellular medicines company which develops allogeneic (off-the-shelf) cellular medicines. The company is twin listed on the Nasdaq (MESO) and Australian Securities Exchange (MSB). The company uses disruptive technology platform to build a broad portfolio of allogeneic mesenchymal precursor cell product candidates.
Tasly Pharmaceutical Group is one of the biggest pharmaceutical companies in China which focuses on Research and development, commercialization and manufacturing of innovative Chinese medicine, biologics and chemical drugs in the therapeutic areas of cardiology, oncology and metabolism.
Following the closure of investment agreement and the development and collaboration agreement with China’s Tasly Pharmaceutical Group, Mesoblast’s share price surged by 1.19% to $ 1.700 on 17 September 2018 (7:08 PM AEST). The stock has seen a performance change of +21.74% over the past one year with 12.75% improvement in the last three months.
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