Divests Puregraft® Products, Licenses Celution® for Alopecia and Options Broader Aesthetic Market Rights
The Bottom Line: This transaction enables Cytori to monetize a non-core product, Puregraft®, simultaneously increase operational focus on core Celution® cell therapeutic applications and market development, and establish a strategic partnership in the development of new market opportunities in Alopecia. Under this agreement, CYTX maintains certain limited rights to Puregraft® and the related technology and receives an exclusive license from Bimini for cell-enriched applications and future development activities (in exchange for royalty payments on Puregraft® from Cytori to Bimini), which in the aggregate, represent significant market opportunities for Cytori. Additionally, Bimini will continue negotiations to acquire market rights for the cell-based aesthetics market beyond Alopecia, which are actively underway.
CYTX closed at $2.65 and has been in an up and down pricing spiral since 7/1/13 with moderate to high volume. CYTX is a … BUY at this price as this event should sway some momentum however, as we step toward earnings - - the pendulum always swings lower and jumps post LPS announcement.
Curious the aesthetics option has a shelf life only til year end !!!
Maybe CC is finally tired of getting jerked around with partnerships that never come and has put a near term firm date on the talks.. Of course, it doesnt mean a deal will be reached.