Regenerative medicine company BioTime said this week it raised $20 million in a closed round and it inked a development and licensing deal between its subsidiary Orthocyte and orthobiological-focused Heraeus Medical.
BioTime and its subsidiaries develop regenerative technologies around pluripotent stem cells and cell-based therapies.
Alameda, Calif.-based BioTime said today it closed a direct offering of 6.5 million shares at $3.13 per share on the Tel-Aviv Stock Exchange, pulling in approximately $20 million.
The company said it began trading on the TASE in early September.
Earlier this week Biotime said its subsidiary OrthoCyte signed a development and licensing agreement with Heraeus Medical GmbH to develop bone grafting therapies based on BioTime’s PureStem progenitor cell tech.
“It’s a great opportunity to work with a prominent partner such as Heraeus Medical for the development of an innovative solution for bone grafting in unmet orthopedic needs. This agreement will allow OrthoCyte to advance its development work on therapeutic applications in bone repair, while retaining the rights to other orthopedic indications targeting low back pain and osteoarthritis, as well as soft tissue diseases and injuries,” OrthoCyte research and business development veep Francois Binette said in prepared remarks.
Under the deal, Heraeus is slated to make an initial $1 million upfront payment to OrthoCyte, with additional payments upon reaching certain milestones, BioTime said. Heraeus will be responsible for sales and OrthoCyte will oversee development and initial manufacturing.
“The announcement of this collaboration with BioTime is an important strategic step in the field of regenerative medicine involving novel orthopedic applications that could significantly improve the current approach in targeting osseous indications (orthopedics). We view this agreement as an exciting opportunity for Heraeus to embark upon as a pure play orthobiologics initiative targeting a number of key musculoskeletal areas as we look to continue to expand our global footprint in the regenerative medicine market,” Heraeus Medical prez Dr. André Kobelt said in a press release.