The company’s name will be changed to Taxus Cardium Pharmaceuticals Group in connection with the strategic collaboration.
The strategic collaboration is designed to support the commercial development of Generx and Excellagen by Cardium, and also provide new opportunities to explore the commercialization of these products for the emerging and rapidly growing advanced healthcare market in the People’s Republic China, and Taxus oncology-focused product opportunities for the US market.
The deal includes funding in the form of direct investments in Cardium of up to $5m to support the commercialization of Cardium’s products. Stock acquired by Taxus in connection with the strategic alliance will be purchased at a premium above the then-prevailing average market price of Cardium common stock.
Cardium obtained an initial tranche of funding pursuant to the agreement by selling approximately 714,000 shares of common stock at $0.70 per share. Future tranches of up to $4.5m would be sold at a 10% premium to the then-prevailing market price, based on a thirty day trailing average. The stock acquired is unregistered common stock and no warrants will be issued.
In January 2014, Cardium reported encouraging initial clinical pilot study findings from its ASPIRE international Phase III registration clinical study, which is designed to confirm the continued safety and effectiveness from four previously completed clinical studies of Generx as an interventional cardiology angiogenic gene therapy for the potential treatment of cardiac microvascular insufficiency, a condition that leads to myocardial ischemia due to advanced coronary artery disease.
Cardium also recently reported on advances in the commercial development of Excellagen as an advanced wound care therapy. Excellagen is an FDA-cleared, acellular biological skin substitute designed as a professional-use advanced wound care product for the treatment of chronic non-healing diabetic foot, venous and pressure ulcers, which also has multiple additional potential tissue regeneration applications based on stem cells and other biologics.
On 1 January 2014, Excellagen received a unique Q code product reimbursement designation as a ‘skin substitute’ for the treatment of diabetic foot ulcers and a broad array of other wounds product by the U.S. Centers for Medicare and Medicaid Services (CMS). Cardium also reported on new preclinical studies that Excellagen facilitates the use of allogeneic stem cells for diabetic wound healing and autologous tissue scaffolding.
In connection with the strategic collaboration, Taxus will also cooperate with Cardium to develop opportunities for the regulatory approval and commercialization of Generx and Excellagen in China, which has a rapidly growing market and needs for advanced healthcare including products for the treatment of heart disease and advanced wound care.
Cardium will also have the opportunity to work with Taxus on the development of new and innovative product opportunities for Taxol (Paclitaxel) based products in the US. Jiayue Zhang, who is the chairman of Taxus, and an additional individual with US corporate and financial experience, have agreed to join Cardium’s board of directors. Cardium will change its name to Taxus Cardium Pharmaceuticals Group. The stock trading symbol will remain unchanged.