Lineage Inks Option Agreement With Amasa Therapeutics For HyStem

Lineage Cell Therapeutics Inc LCTX has granted an exclusive option to Amasa Therapeutics Inc to acquire an exclusive, royalty-bearing license to use its HyStem technology to develop and commercialize therapies for local treatment of solid tumors under pre-negotiated terms.
Under the option agreement, Amasa will purchase some amounts of Lineage's existing supply of clinical-grade HyStem biomaterial and has the right to buy additional quantities in up to 12 months.
Lineage will receive an upfront cash payment and, if the option is exercised, would be entitled to additional payments, sales royalties, and sublicense fees and royalties.
HyStem is a patented biomaterial made from and structurally mimics naturally occurring extracellular matrix, the structural network of molecules surrounding cells in organs and tissues.
Price Action: LCTX shares are up 2.80% at $2.94 during the premarket session on the last check Thursday.