Quarterly Report
Sydney, July 31, 2020 AEST (ABN Newswire) - During the quarter, Regeneus Ltd (
ASX:RGS) received notification from Kyocera Corporation (TYO:6971) that its lead stem cell platform technology Progenza for the treatment of Knee Osteoarthritis (Progenza OA) had passed Kyocera's due diligence process.
This milestone aligned with the timelines set out in the non-binding Memorandum of Understanding (MOU) signed between the two companies (2 March), which granted Kyocera exclusive negotiation rights for a commercial licence for Progenza OA in Japan.
Pursuant to the terms of the MOU, this milestone triggers a further payment of JPY100M when a definitive commercial licence is executed, in addition to any payments that are included in the commercial arrangement.
While outside the quarter, Regeneus recently announced Kyocera will continue to have a short extension to the exclusive rights to negotiate the licence until 31 August 2020.
Financial update
The Company's cash balance as at 30 June 2020 was $982k. Net operating cash outflow for the quarter was $376k, including R&D activities, corporate costs and expenditure related to negotiations with Kyocera.
Regeneus continued its cost-containment activities over the June quarter. It is anticipated that the cash balance at the end of the quarter and the undrawn facilities of $2.9 million will provide sufficient cash to fund operations until negotiations with Kyocera are complete.
Outlook
Regeneus CEO and Executive Director Leo Lee said the Company continues to align its activities with the revised strategic direction to address global pain market and deliver long-term shareholder value.
"The June quarter was another period of progress for Regeneus and we are pleased to have recently provided positive progress on our negotiations with Kyocera. We look forward to updating the market on this front," said Mr Lee.
To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/509LD9UQ
About Regeneus Ltd
Regeneus Ltd (ASX:RGS) is a Sydney-based clinical-stage regenerative medicine company using stem cell technologies to develop a portfolio of novel cell-based therapies. The regenerative therapies seek to address unmet medical needs in human health markets, focusing on neuropathic pain, including osteoarthritis and various skin conditions, with its platform technologies Progenza(TM) and Sygenus. Visit www.regeneus.com.au for more information.
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