RTI Biologics (Nasdaq: RTIX), a provider of orthopedic and other biologic implants, and Athersys (Nasdaq: ATHX), a regenerative medicine and cell therapy R&D; formed a collaboration under which ATHX will provide RTI access to its Multipotent Adult Progenitor Cell (MAPC) technologies.
Under the agreement, RTIX has licensed ATHX’s technology to isolate and preserve cells from organ and tissue donors. This will enable RTI to develop and commercialize MAPC technology-based biologic implants exclusively for certain orthopedic applications. With this license, RTI expands its capabilities for accessing the fastest growing segment of the bone graft substitutes market, while ATHX extends the application of its robust stem cell technology platform to an important segment of the orthopedic market.
Under the agreement, ATHX will receive a $3 M license fee and is also eligible to receive payments up to a cumulative total of $37.5 M as follows:
- $2 M contingent upon successful achievement of certain development and commercialization milestones, and
- An additional maximum total of $35.5 M contingent upon achievement of certain cumulative revenue milestones, which will reflect the ultimate commercial success of the product in this fast growing market,
- In addition, ATHX will receive tiered royalties from the distribution of implants using Athersys’ technologies,
- RTI plans to make MAPC technology-based biologic implants available to its customers for use in orthopedic surgeries in the first half of 2012.
RTI Biologics is a leading provider of sterile biological implants for surgeries around the world with a commitment to advancing science, safety and innovation.
- RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes,
- These allograft and xenograft implants are used in orthopedic, dental, hernia and other specialty surgeries,
- RTI offers precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps.