Lisata Therapeutics, Inc. (market cap: $23.25 million), a pharmaceutical company specializing in the development of novel therapeutics, announced today that it has entered into a significant exclusive license and collaboration agreement with Kuva Labs, Inc. According to InvestingPro analysis, the company maintains a GOOD overall financial health score despite being in development stage, with several key initiatives in progress.
The agreement, which was officially signed on November 30, 2024, grants Kuva Labs a worldwide exclusive license to develop and commercialize certepetide, alongside a non-exclusive license to utilize certain know-how from the Sanford Burnham Prebys Medical (TASE:PMCN) Discovery (NASDAQ:WBD) Institute. Kuva Labs will be responsible for all research, development, and commercialization expenses related to the licensed products, while Lisata will supply certepetide for clinical and eventual commercial use.
Kuva Labs has committed to an upfront cash license fee of $1.0 million, payable in four installments within a year from the agreement date. Additionally, the company is obligated to make development milestone payments up to $1.5 million and commercial milestone payments up to $17.5 million, contingent upon achieving specific regulatory and sales targets. Moreover, Kuva will pay Lisata a 5% royalty on net sales of licensed products, with certain potential reductions as detailed in the agreement.
The collaboration is poised to explore the potential of certepetide as a targeting and delivery agent for Kuva’s NanoMark™ imaging technology, particularly in the treatment of solid tumors. The agreement will remain active on a product-by-product and country-by-country basis until the end of the royalty term, with provisions for termination under specified conditions, such as insolvency, material breach, or by mutual consent.
The full terms of the License and Collaboration Agreement will be disclosed in Lisata's Annual Report on Form 10-K for the fiscal year ending December 31, 2024. This SEC filing-based report reflects the company's efforts to expand the reach and impact of its therapeutic developments through strategic partnerships. With analyst price targets ranging from $13 to $15 and current trading levels suggesting potential undervaluation according to InvestingPro Fair Value metrics, investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Lisata Therapeutics reported noteworthy developments in its Q3 2024 earnings call. The company revealed a decrease in operating expenses to $5.3 million, down from $6 million in Q3 2023, and a slight improvement in net losses at $4.9 million, compared to $5.3 million the previous year. Research and Development (R&D) expenses also fell by 24.8% to approximately $2.5 million.
Lisata Therapeutics also shed light on significant advancements in its clinical trial programs, particularly for its leading drug candidate, certepetide, developed for treating various advanced solid tumors. Certepetide received an orphan drug designation for cholangiocarcinoma, and clinical trials are progressing well, with some cohorts completing enrollment ahead of schedule.
The company's cash reserve of $35.9 million is expected to fund operations into early 2026. Despite expressing frustration with its current market valuation, Lisata Therapeutics remains committed to advancing certepetide across multiple tumor types and exploring strategic partnerships. The company eagerly anticipates presenting preliminary results for certepetide in various trials at ASCO GI in January 2025.
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