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RepliCel, China's Yofoto complete licensing deal for cell therapy programs

Canada's RepliCel Life Sciences Inc. completed a strategic agreement with Yofoto (China) Health Industry Co. Ltd. for regeneration cell therapies.

Under the agreement, the privately held Chinese company gained a 15-year exclusive license to commercialize RepliCel's tendon regeneration cell therapy RCT-01, skin rejuvenation cell therapy RCS-01 and injection technology RCI-02 for dermal applications excluding hair-related treatments, in Greater China.

Yofoto invested about C$5.1 million in RepliCel by acquiring 5,357,000 common shares at 95 Canadian cents apiece. Yofoto also bought 1,071,580 share purchase warrants. Each warrant can be exercised to buy one common share for 95 Canadian cents.

RepliCel will also receive milestone payments and sales royalties on the commercialization of its therapies. In addition, Yofoto committed to funding RepliCel's clinical programs included in the licensing agreement over the next five years, along with a related cell-processing manufacturing facility in Greater China.

The companies said they are now ready to launch the first phase of their strategic collaboration in the Greater China region and RepliCel's next stage of activity outside of Asia.

RepliCel is a regenerative medicine company that develops autologous cell therapies that treat functional cellular deficits.