CytoTherapeutics deal

CTII and Astra AB signed an exclusive, worldwide license agreement to develop and commercialize products to treat chronic pain. The deal covers CTII's CereCRIB implant, which uses encapsulated bovine adrenal cells to secrete natural analgesics, as well as other encapsulated cell approaches. CereCRIB is in Phase I/II trials in Switzerland and Phase I trials in the U.S.

The deal could be worth more than $40 million to CTII, which will receive an initial payment of $5 million. Astra (Sodertalje, Sweden) will provide about $5 million a year to fund R&D costs of CTII's pain control program for four years, and will pay milestones of up to $16 million. Astra will fund clinical trial expenses. CTII (Providence, R.I.) will receive a royalty on sales, including a profit on manufacturing. ...