Opexa Announces Stem Cell Agreement with Novartis

THE WOODLANDS, Texas -- Opexa Therapeutics, Inc. (NASDAQ:OPXA), a company developing a novel T-cell immunotherapy for multiple sclerosis (MS), has entered into an exclusive agreement with Novartis for the further development of it’s stem cell technology. This technology, which has generated preliminary data showing the potential to generate monocyte derived islet cells from peripheral blood mononuclear cells, was in early preclinical development at Opexa.

Under the agreement, Novartis will acquire Opexa's stem cell technology and Novartis will have full responsibility for funding and carrying out all research, development and commercialization activities. Opexa will receive an upfront cash payment of $3 million, plus an additional $1 million as a technology transfer fee to be paid over the course of a six month period. Opexa is also eligible to receive royalty payments from the sale of any products resulting from the use of the technology and retains an option on certain manufacturing rights.

“This represents a great opportunity for Opexa,” stated Neil K. Warma, Opexa’s president and CEO. “Novartis is one of the premier pharmaceutical companies and the expertise they bring to this program will undoubtedly advance the technology significantly. This agreement will also allow us to firmly focus our attention on our key clinical asset, Tovaxin®."

Source: Opexa Therapeutics, Inc.