CollPlant Holdings Ltd. (NASDAQ: CLGN) rose in early Monday trading. CollPlant and United Therapeutics (NASDAQ: UTHR) disclosed a global licensing and commercialization agreement for 3D bioprinting of solid-organ scaffolds for human transplants.
Under terms of the agreement, CollPlant granted United Therapeutics an exclusive license to its technology for the production and use of rhCollagen-based BioInk for 3D bioprinted lung transplants throughout the universe.
In addition to the initial focus on lung manufacturing, the agreement grants United Therapeutics an option, to expand the field of its license to add up to three additional organs.
Under financial terms of the agreement, once effective, CollPlant will receive an upfront payment of $5 million and milestone payments of up to $15 million.
The agreement also provides for option exercise payments of up to $9 million, and additional developmental milestone payments of up to $15 million if United Therapeutics elects to develop manufactured organs other than lungs using CollPlant's technology.
CollPlant will also be entitled to receive royalties on sales as well as reimbursement for certain costs.
CollPlant CEO Yehiel Tal said, "We strongly believe that our proprietary and proven rhCollagen is the finest building block for regenerative medicine scaffolds available today, and will play a critical role in the organ manufacturing process.
"As a pioneer in the field, United Therapeutics is the perfect partner for us. This strategic agreement is a major achievement for CollPlant as it aligns us with a global leader, validates our technology and creates value for our shareholders."
CollPlant shares galloped $2.80, or 50.9%, to $8.30, while United shares picked $2.29, or 1.9%, to $125.24
