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- Osteopore (OSX) signs non-binding term sheet with CellHeal which is committing $10 million, pushing commercialisation in China
- The contract provides the framework to define agreements for the licensing of certain Osteopore intellectual properties and technologies to CellHeal
- The companies are negotiating royalties with CellHeal expected to receive somewhere between 10 and 20 per cent of sales
- The companies plan to sign a definitive agreement before August 30 this year, with the term sheet expiring the same day if an agreement was not signed before
- Shares are up 6.25 per cent, trading at 8.5 cents at 12:20 pm AEST
Osteopore (OSX) has signed a non-binding term sheet with CellHeal which is committing $10 million to push commercialisation in China.
The contract provides a framework for the companies to define agreements for the licensing of certain Osteopore intellectual properties and technologies, such as their 3D printed biomaterials for bone, cartridge, and tissue regeneration to CellHeal.
CellHeal has only been approved to use the IP and technology for the regeneration of the nose and dental areas.
CellHeal is a Melbourne-based partner specialising in commercialising products for entry into the Chinese, Hong Kong and Macau markets.
As part of the deal, CellHeal will raise $10 million to fund Osteopore’s commercialisation in China and will go towards setting up manufacturing facilities, clinical trials, attaining regulatory approvals, and selling products in China.
The two companies are negotiating a royalty with CellHeal expected to receive somewhere between 10 and 20 per cent of sales.
CellHeal will also be responsible for setting up a GMP manufacturing facility in China to produce the products.
Upon completion of the facility and meeting of requirements, Osteopore is set to order $600,000 worth of its products from the CellHeal manufacturing facility at Osteopore’s wholesale price with a 10 per cent administration fee.
“Together with CellHeal as a strategic partner, Osteopore is making a very significant step into entering the China market with the set up of manufacturing facilities to develop, manufacture and commercialise our groundbreaking implants,” OSX Executive Chair Mark Leong said.
“Leveraging the synergies of our expertise, resources and shared vision, we are confident this partnership will unlock opportunities to change lives and expand our footprint.”
The companies plan to sign a definitive agreement before August 30 this year, with the term sheet expiring the same day if the agreement is not signed before.
OSX was up 6.25 per cent, trading at 8.5 cents at 12:20 pm AEST.
