In the first quarter of 2014, Cardium Therapeutics changed its name to Taxus Cardium Pharmaceuticals Group due to a collaboration and funding arrangement with China-based Shanxi Taxus Pharmaceuticals Co., Ltd.
At that point, the San Diego-based company was focused on the commercial development of its Generx® and Excellagen® product lines. This past January, one-time NYSE Amex-listed Taxus Cardium again changed its name to Gene Biotherapeutics Inc. (OTCPK:CRXM), a move meant to reflect the company's plan to exclusively focus on the late-stage clinical research and commercialization of gene-based biotherapeutics for niche markets in the oncology and cardiology spaces.
To that point, Gene Therapeutics said today that it has entered into an agreement with newly-formed Olaregen Therapeutix pursuant to which Olaregen is buying the company's Excellagen flowable dermal matrix for wound healing. Per the agreement, Olaregen will pay $650,000 in cash up front and owe another $3.35 million in additional consideration that can consist of royalties on worldwide net sales, accelerated royalties in the form of lump sum cash payments based on capital investments received by Olaregen or the sale of the Excellagen technology platform to a third party.
Excellagen, a formulation of purified bovine dermal collagen, is an FDA-cleared, flowable dermal matrix indicated for the treatment of hard to heal wounds, such as diabetic foot ulcers, chronic vascular ulcers and pressure ulcers, as well as other dermal wounds. Further, Excellagen can serve as an Enabling Delivery Platform for pluripotent stem cells, antimicrobial agents, small molecule drugs, DNA-Based Biologics, conditioned cell media and peptides.
The product was first cleared as a medical device for wound treatment by the U.S. Food and Drug Administration in 2011, with expanded indications related to broader labeling in subsequent years. The company has struggled to gather sales traction with Excellagen.
The sale to Olaregen is not of global scale. Gene Biotherapeutics is keeping the rights to commercialize Excellagen in greater China, the Russian Federation and 11 other Eurasian countries within the Commonwealth of Independent States.
Once actively traded, shares of Cardium/Taxus/Gene Pharmaceuticals trade more by appointment today. Despite the news, only 10,000 shares have traded on Wednesday as noon approaches on Wall Street, although the stock has climbed a penny (+11.9%) to 9.4 cents.
According to OTC Markets Group data, that equates to a market capitalization of just $1.36 million.
