SAN DIEGO (AP) -- Cytori Therapeutics said Monday it could get as much as $531 million after licensing its regenerative cell technology to Lorem Vascular.
The deal allows Lorem to market Cytori's cell therapy in China, Hong Kong, Malaysia, Singapore and Australia as a treatment for cardiovascular and renal conditions and diabetes. Beijing-based Lorem Vascular will buy 8 million shares of Cytori for $3 per share, investing a total of $24 million in the company, and it will order $7 million in devices and consumable products. The 30-year licensing agreement could bring Cytori as much as $500 million in fees.
The companies said they expect to gain marketing approval in China in 2014.
Lorem Vascular Chairman K.T. Lim will get a seat on Cytori's board as part of the deal.
Cytori's Celution system is designed to take regenerative cells out of a patient's fat tissue. Cytori is using those cells to develop treatments for a variety of illnesses.
Shares of Cytori Therapeutics rose 3 cents to $2.09 on Monday, then soared 34 percent in after-hours trading to $2.80. The stock has traded in a 52-week range of $2 to $4.25.