United Therapeutics will use the company's stem cells to develop a treatment for pulmonary hypertension.
The license that Pluristem Therapeutics Ltd. (Nasdaq:PSTI; DAX: PJT: PLTR) awarded to United Therapeutics Corporation (Nasdaq: UTHR) to use of its PLacental eXpanded (PLX) cells to develop and commercialize a cell-based product for the treatment of pulmonary hypertension came into effect yesterday. Pluristem awarded the license on June 19, after obtaining permission from the Office of the Chief Scientist.
United Therapeutics paid Pluristem a down payment of $4 million when the agreement was signed, and it will make up to $55 million in milestone payments, and cover the costs of development and clinical trials for this indication. If the product is commercialized, United Therapeutics will also pay royalties.
Pluristem's share price fell 5.7% on Nasdaq yesterday to $3.15, giving a market cap of $131 million, but rose 1.3% premarket trading today, but fell 2.8% by mid-afternoon on the TASE today to NIS 10.89.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2011
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