Mesoblast, Tasly Pharmaceutical complete transaction for China partnership
Mesoblast announced completion of the transaction with Tasly Pharmaceutical Group to establish a strategic partnership in China for Mesoblast's allogeneic mesenchymal precursor cell product candidates MPC-150-IM for heart failure and MPC-25-IC for heart attacks. Mesoblast has received $40M from Tasly, comprising an upfront technology access fee of $20M and an equity purchase of $20M for which Mesoblast Limited has issued 14,464,259 fully paid ordinary shares to Tasly. As consideration, Tasly has received exclusive rights and will fund all development, manufacturing and commercialization activities in China for MPC-150-IM for the treatment and prevention of chronic heart failure and MPC-25-IC for the prevention and treatment of acute myocardial infarction. Mesoblast will receive $25M on achievement of product regulatory approvals in China, double-digit escalating royalties on net product sales, and six additional escalating milestone payments upon the product candidates reaching certain sales thresholds. Mesoblast and Tasly will establish a joint steering committee, with equal representation from both parties, to oversee, review and coordinate the development, manufacturing and commercialization activities for the cardiovascular product candidates in China. The parties, through the joint steering committee, plan to expedite development and commercialization of these cardiovascular product candidates by leveraging each other's clinical trial results in China, and the United States and other major jurisdictions respectively to support their respective regulatory submissions for MPC-150-IM and MPC-25-IC.