BTX and its subsidiary Cell Cure Neurosciences has been awarded a grant of $1.5 M, from Israel's Office of the Chief Scientist (OCS) to help finance the development of OpRegen^®, a cell-based therapeutic product in development by Cell Cure Neurosciences for the treatment of age-related macular degeneration.
Cell Cure Neurosciences' plans for the development of OpRegen^® include completion of preclinical testing and filing an application to commence human clinical trials in 2014.
The Bottom Line: These grants are among the Israel's R&D Law's stated objective of creating new employment opportunities through the encouragement of domestic R&D projects. The OCS has previously provided grants to Cell Cure Neurosciences who will pay a 3.5% royalty to the OCS on revenues from OpRegen^® until total royalties paid equal 100% of the amount of the grant plus interest at a LIBOR rate.
BTX closed on 5/10/13 at $4.08 and the grant news is actionable … as any monies in effect valuation … +$0.02 to $0.05 - on this one.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.