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TOPIC: Olympus - Cents on the Dollar - Fistula?

Olympus - Cents on the Dollar - Fistula? 10 May 2013 06:11 #445

  • rongside
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CC mentioned that they bought back the rights to the Celution manufacturing JV for cents on the dollar. As Fas mentioned in the past, Olympus had spent a very considerable amount of money on the Celution One version. I assume that the efforts of their design teams and engineers have had a material benefit in the development of the Celution system and that this will be reflected in the new desk top version.

CYTX now has NO partners that can inhibit its development and strategy choices! This is a very important development. :happy:

I wonder what is going on with the Fistula indication and trial data????? If Olympus is extricating itself from the CYTX joint venture should it not also free up the data that generated the fistula CE approval? If this was done would it not allow CYTX another opportunity to ask for reimbursement in recalcitrant fistula wounds in Europe? Comments......
The following user(s) said Thank You: Joncon63, joeycav11

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Olympus - Cents on the Dollar - Fistula? 10 May 2013 08:17 #446

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Yes- the signing of that deal a few days ago, I consider very important too and kind of "frees up" Cytori and potential partners from an uncertainty, which Calhoun always has claimed "was no issue", but one should not believe everything he says.

Yeah- Fistula. To be or not to be, thats the question.
Logic tells me that the development of the fistula application has nothing to do with the manufacturing agreement and that the developer still has sole rights to the data, which by my logic also means that I still see Olympus and the Olympus-Terumo JV as potential candidates for therapeutic partner deals. Especially the bone- wound JV needs the living cell I believe, but its difficult to estimate how the rejection by Olympus of a Terumo take-over and the appearance of the subsequent white knight, i.e. Sony have an impact on their strategy going forward. It still make sense, to do something together, especially if the regulatory rules come into effect before June in Japan.

To me that is of immense importance, since it will force a "sense of urgency" for all " regenerative-medicine-wannabees" in Japan.

I still stick to my tip-especially after CCs remark about the 35 Mio - some deal soon. If not done by end June, we will see a secondary in July.
:winky:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Olympus - Cents on the Dollar - Fistula? 10 May 2013 08:27 #447

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Fas you beat me to the point...your reply popped up as I was about to reply...LOL
Let me say I agree with Fas that the JV should have nothing to do with the fistula data. I wouI would add that the data/rights could be sold seperately if someone was interested. The bigger question in fistula remains imho was why was reimbursement not pursued post approval ? :evil: A lot of possibilities there to speculate on imho !
Fas you mention the bone study....this is a nice trial with n=200 patients I believe....I hope it isnt another dead end with partners unable to come to gether.
Speaking on partners....the 30-35 million comment you mention was made by Hedrick I believe associated along with Astellas comments and posed as an example...but I too found it interesting.

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Olympus - Cents on the Dollar - Fistula? 10 May 2013 10:00 #448

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Hedge- could be Hedrick said something to that tune.

The transcript from Seeking Alpha says that Saad said the thing I was referring to- but I am pretty sure it was CC- I mean this one here about the Olympus payment structure-

Yes, what we try to do when we negotiated this, and Olympus was actually very generous in trying to help us find a way to make this work, was we wanted maximum flexibility here. Particularly knowing that the next couple of years are really the critical time for us to get a transition from the investment that we've been making and the technology to a profit-oriented business model. So probably the next 12 to 18 months is probably the most critical for us in terms of cash. So what we wanted to do is to have as much flexibility with those payments as we could, that we would be able to determine based on the strength of our balance sheet how much we would -- we could pay or take that down. So the first is, we're paying about $220,000 up front, this comes from money that's already in the joint venture. So these are royalty payments that we have paid into the joint venture already for product royalties because -- that Cytori's making the products today, but the JV really has the rights. We paid royalties into the JV, which has effectively funded the JV over the last few years. So there's a couple of hundred thousand in there that's an existing balance that's jointly owned. But Olympus is allowing us to use that money to pay the upfront payment to them. And then quarterly, we'll pay a royalty of the same rate, effectively as we've been paying over the past on product sales that will, again, pull down that total amount of money we owe to Olympus. And then at the end of a 1-year period, a fiscal 1 year, so not a calendar year, but at the end of the 12-month period, if we choose, we can pay whatever that remaining balance is. Let's say it's $4 million or so, if we have the capital and the board decides that, that's the right use of capital, we'll pay that $4 million. If we decide to wait a year, then it'll be $6 million minus whatever those royalty payments have been up until that point. So it gives us flexibility when we pay it. Now the one thing that we designed in was that if we bring in, let's say, over $35 million from whatever the source of strategic partnership or a license deal, then Olympus can call us to go ahead and pay that $4.5 million and be out of the liability.


For some reason that number has come up before.... :KO:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:
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