Cytori Therapeutics, Inc. (Nasdaq:CYTX)
More than 230 million Chinese have a form of Cardiovascular Disease which is the country’s leading cause of death, accounting for more than 40% of all deaths, or three million people per year.
According to recent estimates, due to population growth and aging, the number of annual Cardiovascular Disease events in China is projected to increase by more than 50% during the next decade and a half. The growing worldwide prevalence of diabetes is one of the contributing factors to increasing rates of vascular diseases, as they are common co-morbidities of diabetes.
CYTX and Lorem Vascular reported a partnership to commercialize Cytori Cell Therapy for the cardiovascular, renal and diabetes markets in China, Hong Kong, Malaysia, Singapore and Australia.
Under the agreement, Lorem Vascular committed to pay up to $531 million in license fees, opening product purchase commitments and CYTX equity purchases.
Cytori Cell Therapy is derived from CYTX ’s Celution(R) System, which enables access to a patient’s own adipose (fat tissue)-derived regenerative cells at the point-of-care for a range of injuries and conditions.
Lorem Vascular will pay up to $500 million in fees for a 30-year exclusive license to Cytori Cell Therapy for all indications, excepting alopecia and aesthetics, in the licensed territories in the form of revenue milestones.
CYTX will receive $24 million in exchange for 8 million shares of its common stock at $3.00 per share. Equity purchased will be closed in two installments; a $12 million payment that will be paid within 7 days and a second $12 million payment that will be made within 60 days. In addition, Lorem Vascular will order $7 million in Celution(R) devices and consumables with a $2 million order placed immediately and a $5 million order to be placed following regulatory approval in China.
Lorem and CYTX have implemented a regulatory plan in China and anticipate approval in 2014.
CYTX is developing cell therapies based on autologous adipose-derived regenerative cells (ADRCs) to treat cardiovascular disease and other medical conditions. CYTX ’s scientific data suggest ADRCs improve blood flow, moderate the inflammatory response and keep tissue at risk of dying alive.
More about Cytori Therapeutics, Inc. (Nasdaq:CYTX) at www.cytori.com
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Recon Technology, Ltd. (Nasdaq:RCON)
RCON reported that it recently received several sales orders for specialized oilfield furnaces from China National Petroleum Company's Jiling Oilfield Company and Huabei Oilfield Company. The total value of these contracts will be approximately RMB11 million or USD1.9 million.
According to sales contracts, RCON will provide 9 vacuum heating furnaces to Jiling Oilfield Company, and 6 phase-change heating furnaces to Huabei Oilfield Company.
RCON will be in charge of the project, from design through manufacture of the furnaces, and expects to complete the orders before the end of calendar 2013.
Furnaces are mainly used to facilitate petroleum transportation by raising oil temperature to decrease viscosity or flow resistance and maintain liquidity before the oil is transported from the oilfield.
RCON provides leading Chinese oil and gas companies with automation services designed to increase efficiency and profitability in relation to the exploration, extraction, production, refining and transportation of field based petroleum products.
More about Recon Technology, Ltd. (Nasdaq:RCON) at www.recon.cn .
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