Cytori to buy Azaya’s nanoparticle Development Platform

Azaya is engaged in the development of more effective cancer treatments through its novel nanotechnology platform.

The company’s patented Protein Stabilized Liposomes platform enables for high-dose delivery of potent cytotoxics with potentially lower side effects. 

Under the terms of the deal, at closing, Cytori will issue $2m of its common stock and be responsible for about $2m of Azaya’s trade payables.

As part of the deal, which must be approved by Azaya's shareholders, Cytori will be obligated to make additional future payments of up to $16.25m to the San Antonio company based on several milestones.

The deal also includes conditional payments of up to $150m. Specifically, Cytori will make royalty payments to Azaya, based on product revenue, not exceed $100m.

Cytori has agreed to pay Azaya certain license, sale and other transfer fees up to $50m. It has also agreed to enter into a five-year lease for Azaya’s San Antonio manufacturing and development facility.

Cytori president and CEO Marc Hedrick said: “Azaya’s technology and intellectual property present an exciting opportunity to marry Cytori’s cell therapy technology, which is currently in late-stage clinical trials, to a clinically proven and patented off-the-shelf pharmaceutical delivery system directly applicable to regenerative medicine.

“In addition, the Acquisition allows Cytori to cost-effectively expand our clinical pipeline with two promising oncology drugs that potentially have sizable, near-term, global licensing and revenue opportunities.”   

Azaya’s two nanoparticle drugs have so far demonstrated better results in their respective clinical programs.