Cytori Therapeutics ($CYTX) announced the acquisition of certain assets from Azaya Therapeutics, which is a privately held firm. Under the terms of the deal, Cytori will issue $2 million in Cytori common stock up front. It will also assume nearly $2 million of Azaya’s trade payables.
The overall value of the deal is projected to be nearly $170 million, which includes milestone payments and potential royalties. The deal is likely to close by the end of February.
Cytori says the deal will provide it with a proprietary liposomal nanoparticle technology which will help augmenting its position in regenerative medicine. These products include ATI-0918, a nanoparticle liposomal formulation of doxorubicin hydrochloride for treating breast cancer, Kaposi’s sarcoma, multiple myeloma, and ovarian cancer.
The other important product acquired under the deal is ATI-1123, another nanoparticle-stabilized liposomal formulation of docetaxel intended to treat solid tumor cancers of patients who have failed other therapies. Docetexal’s global market is estimated to be worth $1.3 billion.
The company stock has gained nearly 2% this year so far. However, it is still trading way below its 52 weeks high of $5.44. Cytori also recently released topline eview of early three-year follow-up data from the SCLERADEC I trial. The review showed sustained benefit in treated patients over baseline in major study endpoints, which offers another attractive opportunity for the company.