Bone Therapeutics, Link Health and Pregene to develop and commercialize the ALLOB allogeneic bone cell therapy platform in China and Southeast Asia

Terms include €55 million in total upfront and milestone payments with €10 million expected in next 24 months as well as tiered double-digit royalties on net sales

BONE THERAPEUTICS (Euronext Brussels and Paris: BOTHE),  the cell therapy company addressing unmet medical needs in orthopedics and other diseases, Link Health Pharma Co.,  Ltd (“Link Health”) and Shenzhen Pregene Biopharma Company, Ltd (“Pregene”) today announce the signing of an  exclusive license agreement for the manufacturing, clinical development and commercialization of Bone Therapeutics’  allogeneic, off-the-shelf, bone cell therapy platform ALLOB in China (including Hong Kong and Macau), Taiwan,  Singapore, South Korea, and Thailand.

Under the agreement, Bone Therapeutics is eligible to receive up to €55 million in development, regulatory and  commercial milestone payments including €10 million in upfront and milestone payments anticipated in the next 24  months. Bone Therapeutics is also entitled to receive tiered double-digit royalties on annual net sales of ALLOB. Bone  Therapeutics retains development and commercialization rights to ALLOB in all other geographies outside of those  covered by this agreement. As a result, Bone Therapeutics will continue to concentrate on its development and  commercialization plans for ALLOB in the US and Europe and novel innovative cell-based products globally. 

“This collaboration between Bone Therapeutics, Link Health and Pregene expands our geographic reach and  demonstrates the global commercial potential of ALLOB. We already have operational experience in Asia with the Phase III clinical trial of our lead product JTA-004 in Hong Kong. We selected Link Health and Pregene to partner with us in Asia as a result of their expertise in  advanced therapeutics and cell therapies, their proven track record of development and commercial implementation in  Chinese and Asian markets, and Pregene’s well established cell therapy manufacturing capacity. Bone Therapeutics  will continue to develop the ALLOB cell therapy platform for other markets while exploring additional partnership  opportunities in the U.S. and Europe.”
Miguel Forte, MD, PhD, Chief Executive Officer of  Bone Therapeutics 

The agreement grants Link Health and Pregene exclusive rights to clinically develop and commercialize ALLOB for the  treatment of human bone disorders in Greater China, Taiwan, Singapore, South Korea, and Thailand. All rights for China  will be transferred to Pregene and Link Health will gain rights for the remaining countries Bone Therapeutics will share  its patented proprietary manufacturing expertise for the expansion and differentiation of bone-forming cells and has the  option to sell clinical supplies to Link Health and Pregene in preparation for their clinical development of ALLOB. 

“This collaboration and license agreement for Bone Therapeutics’ ALLOB provides a strong addition to our pipeline.  ALLOB has demonstrated the potential to reduce the recovery time and stimulate bone growth for a variety of bone  conditions, and to have a considerable impact on patients’ lives. It is important for Link Health to collaborate with companies that have strong therapeutic product portfolios  and entrepreneurial management. This partnership with Bone Therapeutics is a direct result of our shared commitment to appreciate the enormous potential of cell therapy and regenerative medicine.”
Yan Song, PhD, Chief Executive Officer of  Link Health 

“Pregene now has a flourishing portfolio of CAR-T cell therapy-based cancer treatments. Bone Therapeutics’ ALLOB  provides an allogeneic, off-the-shelf cell therapy that expands our portfolio of cell therapies to include the sizable  commercial potential of orthopedics. We  expect to be able to leverage our extensive international cell and gene therapy experience to develop Bone Therapeutics’  ALLOB platform and subsequently launch products in China and Southeast Asian markets.”
Hongjian Li, Co-founder and Chief Executive Officer of Pregene

ALLOB, an allogeneic and off-the-shelf cell therapy product manufactured through a proprietary, scalable production  process, consists of human bone-forming cells derived from cultured bone marrow mesenchymal stem cells of healthy  adult donors. In preclinical studies ALLOB has shown to reduce healing time in a delayed-union fracture model by half,  and has demonstrated good tolerability and signs of efficacy in two Phase IIa studies for two separate indications. The  Company’s randomized, placebo-controlled, double-blind Phase IIb clinical trial in patients with difficult tibial fractures  has received approval from regulatory authorities in six of the seven planned European countries to date, and is expected  to enroll the first patient later this year. 

About Link Health Pharma Co., Ltd 

Link Health is a leading Chinese pharmaceutical company based in Guangzhou, Southern China, focusing on the development of innovative drugs  for unmet medical needs.  

Link Health has created a highly professional team with diverse expertise in drug development, medical affairs and regulatory affairs. Leveraging deep understanding of China market, regulatory environment and strong network with global biopharmaceutical companies, Link Health is well positioned to bring innovative drugs to the market efficiently. The company has a drug development pipeline of 5 clinical stage assets and 1 under NDA reviewing in China. 

The company has also established a fully owned subsidiary in Amsterdam, the Netherlands. The Dutch office builds and further strengthen collaborations with global pharma/biotech partners and research institutes. 

About Pregene Biopharma Co., Ltd 

Shenzhen Pregene Biopharma Co. Ltd is a leading enterprise in the cell and gene therapy field with the core technology for industrialization. The  company's core team comes from well-known institutions and companies including the Academy of Military Medical Sciences, the University of  Toronto, and the US FDA.  

Pregene has established the gene editing platform, viral vector and cell production platform, nanobody selection platform and other small to pilot trial  manufacturing system, with total investment over 100 million CNY. It has the laboratories and GMP plants for cell and gene therapy of over 10,000  square meter. 

The company focuses on the research and development of cell and gene therapy drugs, and participated in the drafting the national standard  "Considerations for CAR-T Cell Quality Study and Non-clinical Evaluation " issued by the National Institutes for Food and Drug Control in June 2018.  The CAR-T cell therapy for the treatment of multiple myeloma have obtained NMPA IND clearance as the Class I new drug, which is the first in China  and fastest in the world using the humanized single domain antibody in CAR construct, and phase I clinical trials are now in progress. Other pipelines  such as CAR-T, TCR-T and mRNA drugs for tumors, autoimmune diseases and other indications are in the development at different stages. The  company has broad development prospects with the abundant backup technologies. 

Looking forward to the future, the company will build the core capacity in one-stop solution for cell and gene therapy drugs, and fulfill the Express  of innovative medicine development from drug discovery to clinical products. 

About Bone Therapeutics 

Bone Therapeutics is a leading biotech company focused on the development of innovative products to address high unmet needs in orthopedics  and other diseases. The Company has a, diversified portfolio of cell and biologic therapies at different stages ranging from pre-clinical programs in immunomodulation to mid-to-late stage clinical development for orthopedic conditions, targeting markets with large unmet medical needs and limited  innovation. 

Bone Therapeutics is developing an off-the-shelf next-generation improved viscosupplement, JTA-004, which is currently in phase III development  for the treatment of pain in knee osteoarthritis. Consisting of a unique combination of plasma proteins, hyaluronic acid - a natural component of  knee synovial fluid, and a fast-acting analgesic, JTA-004 intends to provide added lubrication and protection to the cartilage of the arthritic joint and  to alleviate osteoarthritic pain and inflammation. Positive phase IIb efficacy results in patients with knee osteoarthritis showed a statistically significant  improvement in pain relief compared to a leading viscosupplement. 

Bone Therapeutics’ core technology is based on its cutting-edge allogeneic cell therapy platform with differentiated bone marrow sourced  Mesenchymal Stromal Cells (MSCs) which can be stored at the point of use in the hospital. Currently in pre-clinical development, BT-20, the most  recent product candidate from this technology, targets inflammatory conditions, while the leading investigational medicinal product, ALLOB,  represents a unique, proprietary approach to bone regeneration, which turns undifferentiated stromal cells from healthy donors into bone-forming cells. These cells are produced via the Bone Therapeutics’ scalable manufacturing process. Following the CTA approval by regulatory authorities  in Europe, the Company is ready to start the phase IIb clinical trial with ALLOB in patients with difficult tibial fractures, using its optimized production  process. ALLOB continues to be evaluated for other orthopedic indications including spinal fusion, osteotomy, maxillofacial and dental. 

Bone Therapeutics’ cell therapy products are manufactured to the highest GMP standards and are protected by a broad IP (Intellectual Property)  portfolio covering ten patent families as well as knowhow. The Company is based in the BioPark in Gosselies, Belgium. Further information is  available at www.bonetherapeutics.com.

Jean-Luc Vandebroek

Directeur Financier, Bone Therapeutics SA

Bert Bouserie

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