Indication intelligence, analysis and sector perception

Athersys (ATHX) and Chugai Pharmaceutical (OTC: CHGCF) (OTCPK: CHGCY) part ways on MultiStem development in Japan.

October 21, 2015 10:32am

DOWN -7.18% on 413.9 share volume to $1.02

ATHX and Chugai end their partnership to develop and commercialize MultiStem cell therapy for the treatment of ischemic stroke in Japan after they could not agree on the modification of financial terms of the agreement in light of the results from a mid-stage study.

All rights to MultiStem will revert to ATHX. It will also retain Chugai's $10 M license fee.

Athersys has signed a letter of intent with another Japanese firm, including a good faith payment, to develop and commercialize MultiStem for several indications in Japan, including ischemic stroke.

Discussions with several companies on developing and commercializing MultiStem outside of Japan are ongoing.

The Bottom Line: It was in the cards for ATHX as it’s been “too quiet in Cleveland” for too long. Yet, ATHX has stated “there are discussions with several companies on developing and commercializing MultiStem outside of Japan are ongoing.”

The sector is already disheveled from uncertainty and forward looking catalysts; be ready for an even more dampening effect.

It's NOT time to throw stones but, to redirect stem, cell and gene therapyRegMed's focus to overlapping indications and disease/treatment status

35 companies, 1 interpreter!

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