LCT, Otsuka join forces to develop NTCELL for Parkinson’s disease

As part of the agreement, LCT will receive an upfront payment of A$3m ($3.5m) within 30 days of signing as well as further milestone payment of A$2m($2m) on inclusion of the first patient in the phase I Parkinson’s trial with NTCELL implantation while Otsuka will fund all development costs, estimated at A$2m, to complete the trial.

The agreement also facilitates Otsuka to jointly develop and commercialise NTCELL in Parkinson’s and other neurological diseases, including hearing loss, through Diatranz Otsuka (DOL), the 50:50 joint venture formed between LCT and Otsuka.

Otsuka on utilisation of the option to develop NTCELLwith DOL, will subscribe A$20m ($21m) additional equity into DOL to fund the ongoing development.

LCT will also transfer the intellectual property for therapeutic use of NTCELL in neurological disease and hearing loss into DOL, creating a new A$40m ($42m)asset in the DOL joint venture.

LCT managing director Andrea Grant said, "This agreement ensures that, if the Phase I clinical trials are successful, the development of NTCELL as a treatment for Parkinson’s disease will be fully funded through to market approval."

Otsuka Pharmaceutical Factory executive senior managing director Hiromi Yoshikawa said, ”We are delighted to extend our partnership to include NTCELL so that together we might transform the lives of patients with Parkinson’s disease and other neurological disorders."

LCT will also retain the exclusive, perpetual licence to develop NTCELL to cure all other, non-neurological diseases.