The potential acquisition would combine Progenitor Cell Therapy’s (PCT) cGMP-quality cell processing and contract manufacturing business with the cell-based research and development programs of StemCells.
PCT has agreed to a period of exclusivity to allow the parties to complete due diligence and negotiate definitive agreements for the proposed transaction. In consideration thereof, StemCells has agreed to make a secured loan of $3.8 million to PCT to bridge some of PCT’s planned capital needs as it pursues its own growth strategy.
StemCells currently has a contract with PCT for various cell processing services, including for the processing of HuCNS-SC cells used in the company’s ongoing Phase I clinical trial for neuronal ceroid lipofuscinosis (NCL, also often referred to as Batten’s disease).