Cephalon, the largest biotechnology company in the regenerative medicine sector, have licensed Mesenchymal Precursor Stem Cell (MPC) therapeutics from Mesoblast for over $2 billion. The MPC will be used for degenerative conditions of the cardiovascular and central nervous systems. These include Congestive Heart Failure, Acute Myocardial Infarction, Parkinson's Disease, and Alzheimer's Disease.
Cephalon will make an upfront payment of $130 million and regulatory milestone payments of $1.7 billion. In addition, Cephalon will make an equity investment of $220 million.
Mesoblast will be responsible for the conduct and expenses of certain Phase IIa clinical trials and commercial supply of the products. Cephalon will be responsible for the conduct and expenses of all Phase IIb and III clinical trials and subsequent commercialization of the products. This global licensing agreement will position Cephalon as a leader in regenerative medicine while further strengthening Mesoblasts late stage pipeline with another innovative biologic platform.
This partnership potentially result in the world's first stem cell therapy for indications that could serve millions of patients.
Mesoblast has developed Phase II clinical data in congestive heart failure and hematopoietic stem cell transplants, plus preclinical data in acute myocardial infarction.
Cephalon's key strength is in late-stage product development and commercialization, and proven expertise in developing products for neurological diseases.
The combination of Cephalon and Mesoblast will ensure regenerative medicine therapies are developed and delivered to physicians and the patients who will ultimately benefit from an arsenal of new innovative approaches for degenerative diseases.