LCT JV secures funds to realise the potential of DIABECELL

LCT JV secures funds to realise the potential of DIABECELL

13 October 2014 – Sydney, Australia & Auckland, New Zealand – Living Cell Technologies Limited (LCT) announced that its 50% owned joint venture Diatranz Otsuka Limited (DOL) has agreed to a loan facility of up to NZD42m from its other shareholder Otsuka Pharmaceutical Factory, Inc. (OPF).

The loan will be repaid from DOL’s cash flows. DOL has also agreed to licence DIABECELL® to OPF for use in USA and Japan for a fee of up to NZD15m.

These agreements are consistent with the restructure announced on 1 April 2014 where DOL controls the resources to realise the potential of DIABECELL and LCT focuses on developing cell therapies for neurodegenerative diseases from its intellectual property portfolio and core technologies.

Both LCT and OPF remain 50% shareholders in DOL and neither shareholder is required to advance any money to DOL unless they explicitly agree to do so. Under a services and products agreement DOL continues to supply LCT with facilities and piglets to manufacture NTCELL®.

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