Regeneus Ltd Stock Market Press Releases and Company Profile
Appendix 4C - Quarterly
Appendix 4C - Quarterly

Sydney, April 29, 2020 AEST (ABN Newswire) - Regeneus Ltd (googlechartASX:RGS), a clinical-stage regenerative medicine company, today released its quarterly cashflow report and review of operational activities for the period ending 31 March 2020 (the quarter).

Highlights:

- MOU agreement signed with Japanese multinational manufacturer Kyocera Corporation for exclusive negotiation rights for Progenza in Japan

- Milestone payment of A$1.6M received from Kyocera

- New key patent for Progenza to be granted by U.S. Patent and Trademark Office

- $4M loan facility from Directors to support Licence and commercialisation negotiations for Progenza

- Cash balance of $1.4M as at 31 March 2020

Operational highlights

During the quarter, the Company made significant progress on its commercialisation strategy for its lead stem cell platform technology Progenza for Osteoarthritis (Progenza OA) in Japan by signing a non-binding Memorandum of Understanding (MOU) with Kyocera Corporation. As part of the MOU, Regeneus received JPY100M (A$1.6M) upfront milestone payment from Kyocera.

Kyocera is a diversified multinational manufacturer; their life sciences business operates as one of the major producers of medical and dental products in Japan, including artificial joints for the knees and hips.

Under the MOU, Kyocera will conduct due diligence on Progenza OA. Upon completion of this, Regeneus will receive formal notification from Kyocera and Kyocera will have exclusive negotiation rights for Progenza OA in Japan until the end of July.

During the quarter, the Company also strengthened its intellectual property (IP) portfolio, with the U.S. Patent and Trademark Office (USPTO) issuing a notice of allowance for a new key patent for Progenza in the U.S.

The new patent to be granted covers the treatment of inflammatory conditions with the combination of stem cells and secretions. This includes inflammatory conditions caused by arthritis, heart disease, autoimmune conditions, respiratory diseases, asthma, Crohn's disease and other gastrointestinal diseases.

Financial Update

In February, the Board of Directors put in place a $4 million loan facility to support the Company's funding runway to commercial licensing negotiations, CEO and Executive Director Leo Lee and Paddington St Finance Pty Ltd, a company associated with Independent Chairman Barry Sechos, have both provided facilities of $2 million.

The Company believes these funding arrangements provided by related parties on 'arm's length terms' demonstrate the Directors' commitment to Regeneus and confidence in the management team's ability to conclude commercial licensing arrangements for its lead platform technology in Japan.

Regeneus' cash balance as of 31 March was $1.4 million. Receipts for the quarter totalled $1.6 million, representing the milestone payment from Kyocera. Net operating cash outflows for the quarter was $1.1 million, mainly related to operational costs, IP filing and R&D-related expenditure and expenditure associated with securing the Kyocera arrangements.

Regeneus continued its cost containment initiatives over the quarter. It is anticipated that the cash at end of March of $1.4 million and the undrawn facilities of $2.9 million will provide adequate cash to fund operations until Kyocera arrangements are finalised.

Outlook

Regeneus CEO and Executive Director Leo Lee said the Company has made positive progress towards its revised strategic direction this quarter.

"The MOU with Kyocera Corporation was a critical milestone in our commercialisation pathway for Progenza OA in Japan. We look forward to the completion of Kyocera's due diligence on Progenza OA and updating the market on this front," said Mr Lee.

To view the quarterly report, please visit:
https://abnnewswire.net/lnk/FTYD4B5F


About Regeneus Ltd

Regeneus Ltd ASX:RGSRegeneus Ltd (ASX:RGS) is a Sydney-based clinical-stage regenerative medicine company using stem cell technologies to develop a portfolio of novel cell-based therapies. The regenerative therapies seek to address unmet medical needs in human health markets, focusing on neuropathic pain, including osteoarthritis and various skin conditions, with its platform technologies Progenza(TM) and Sygenus. Visit www.regeneus.com.au for more information.

https://plus.google.com/108721050557390681250 https://twitter.com/Regeneus https://www.facebook.com/pages/Regeneus/110433905646491 https://www.youtube.com/user/Regeneus http://www.linkedin.com/company/regeneus-ltd?trk=top_nav_home abnnewswire.com 


Contact

Investors
Sandra McIntosh
Company Secretary and Investor Relations
Regeneus Ltd
T: +61-2-9499-8010
E: investors@regeneus.com.au

Media
Daniel Paperny
Media and Capital Partners
T: +61-405-191-257
E: Daniel.paperny@mcpartners.com.au



ABN Newswire
ABN Newswire This Page Viewed:  (Last 7 Days: 9) (Last 30 Days: 29) (Since Published: 3193)