Athersys, Inc. (NASDAQ:ATHX) Files An 8-K Other Events
Item 8.01. Other Events.
As previously disclosed, on June 6, 2018, Athersys, Inc. (“we” or the “Company”), its wholly-owned subsidiary, ABT Holding Company (together with the Company, “Athersys”), and HEALIOS K.K. (“Healios”) entered into a Collaboration Expansion Agreement (the “Collaboration Expansion Agreement”). Under the Collaboration Expansion Agreement, among other things, Athersys granted to Healios an exclusive right of first negotiation (the “ROFN Period”) with respect to an option for an exclusive license in China to use MultiStem products for the treatment of one or more disease indications, which was extended ultimately to June 30, 2019 in exchange for a $2.0 million payment from Healios. Healios had the ability to extend the ROFN Period for another six months through December 31, 2019 with an additional payment of $3.0 million, but has elected not to extend.
Over the past several months, Healios performed further analyses on the China specific development environment, considered product marketability and risks as they pertain to that market, and discussed this and business terms with Athersys. Recently Healios proposed modifications to the original terms of the potential license agreement for additional indications in China that were specified in the Collaboration Expansion Agreement. However, Healios and Athersys have been unable to reach an agreement regarding these proposed modifications and, accordingly, the ROFN Period has expired. Athersys no longer has any obligations to Healios with respect to development in China and is no longer restricted from engaging in discussions with other entities, and is free to evaluate partnering opportunities with other groups.
Also, in March 2018, the Company issued a warrant (the “Warrant”) to Healios to purchase up to 20,000,000 shares of its common stock (the “Warrant Shares”). In connection with the entry into the Collaboration Expansion Agreement, the Company and Healios amended the terms of the Warrant such that (i) the Warrant will not be exercisable with respect to 16,000,000 Warrant Shares unless during the ROFN Period, Athersys and Healios have entered into an option agreement or a license for MultiStem products in China and (ii) the Warrant will only be exercisable with respect to 4,000,000 Warrant Shares at an exercise price equal to the reference price, as defined in the Warrant, but no less than $1.76 per share.>Based upon the expiration of the ROFN period, the 16,000,000 Warrant Shares are no longer exercisable.
About Athersys, Inc. (NASDAQ:ATHX)
Athersys, Inc. is an international biotechnology company that is focused primarily in the field of regenerative medicine. The Company’s MultiStem cell therapy, an allogeneic stem cell product, is its lead platform product and is in later-stage clinical development. Its clinical development programs are focused on treating neurological conditions, cardiovascular disease, inflammatory and immune disorders, certain pulmonary conditions and other conditions where the standard of care is limited or inadequate for many patients. In the neurological area, the Company evaluated in a completed Phase II trial, the potential for MultiStem treatment of patients with a history of neurological damage from an ischemic stroke. The Company initiated a Phase II clinical study in the United States for the administration of MultiStem cell therapy to patients with a history of an acute myocardial infarction, or AMI.
An ad to help with our costs