Regeneus: Japan Clinical Licence Deal Expected Near Term
Edison | Apr 30, 2018 02:49AM ET
Regeneus Ltd (AX:RGS) is aiming to license Progenza for clinical development in Japan in the current quarter. A licence deal would trigger a US$5m milestone payment from partner AGC and would likely see Progenza commence a potentially pivotal Phase II trial in knee osteoarthritis in Japan. Regeneus is in separate discussions with potential licensees for the Sygenus secretions technology following encouraging results from a clinical trial in acne. We add Sygenus to our rNPV model and increase our valuation to A$170m (vs A$146m) or A$0.82/share. Depending on the financial terms, we estimate that a Progenza licence deal could add up to ~A$50m to our valuation.
Well placed for an osteoarthritis licence deal in Japan
Regeneus is well placed to achieve its goal of a Japan licence deal, having already granted AGC an exclusive licence to manufacture Progenza for Japan, reported promising signs of efficacy from the successful Phase I trial of Progenza in knee osteoarthritis (OA) and been granted a Progenza patent in Japan. A Phase II trial in patients with knee OA in Japan could support an application for conditional market approval, in view of the favourable regulatory environment for regenerative medicine products in that country.
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