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Cytori (CYTX) Divests Puregraft® Products, Licenses Celution® For Alopecia And Options Broader Aesthetic Market Rights

$15 M - 3part agreement with Bimini Technologies and its affiliates, Puregraft Technologies and Kerastem Technologies

CYTX has entered into a $15 M three-part agreement with Bimini Technologies and its affiliates, Puregraft Technologies and Kerastem Technologies.


  • CYTX has sold global manufacturing and commercialization rights for the Puregraft® product line. In exchange, CYTX has received a $5 M upfront payment and will receive up to an additional $10 M from commercial milestones related to future Puregraft® sales;
  • Bimini has acquired global, exclusive rights to commercialize the Celution® System for Alopecia (Hair Field). Under the commercial agreement, Bimini will be responsible for all clinical studies, regulatory approvals and market development activities for Alopecia and will pay CYTX perpetual royalties on sales;
  • Bimini has acquired an exclusive option to license Celution® products for the global aesthetics market. The option is effective until 12/31/13.

The Bottom Line: This transaction enables Cytori to monetize a non-core product, Puregraft®, simultaneously increase operational focus on core Celution® cell therapeutic applications and market development, and establish a strategic partnership in the development of new market opportunities in Alopecia. Under this agreement, CYTX maintains certain limited rights to Puregraft® and the related technology and receives an exclusive license from Bimini for cell-enriched applications and future development activities (in exchange for royalty payments on Puregraft® from Cytori to Bimini), which in the aggregate, represent significant market opportunities for Cytori. Additionally, Bimini will continue negotiations to acquire market rights for the cell-based aesthetics market beyond Alopecia, which are actively underway.

CYTX closed at $2.65 and has been in an up and down pricing spiral <$2.35 to $2.65> since 7/1/13 with moderate to high volume. CYTX is a … BUY at this price as this event should sway some momentum however, as we step toward earnings - - the pendulum always swings lower and jumps post LPS announcement.

Puregraft® is an FDA-approved fat grafting product that allows patients to receive injections of their own fat in a single outpatient procedure. Cytori originally developed Puregraft® to be used in combination with its cell therapy technology. Given its simplicity and performance, Cytori has been offering Puregraft® as a stand-alone product to physicians in the U.S., Asia and Europe since 2010.

Bimini is a newly formed company and is based in San Diego, California. Bradford Conlan, who has been part of the Cytori team for nearly 9 years developing and marketing both the Puregraft® and Celution® products, is the founding CEO of Bimini, as well as its affiliates Puregraft Technologies and Kerastem

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