Pluristem in $55M lung therapy licensing deal

United Therapeutics licenses Pluristem lung disease treatment in deal that could top $55M

n Monday June 20, 2011, 8:22 am EDT

NEW YORK (AP) -- Pluristem Therapeutics Inc., which develops therapies that use placental cells, said Monday it licensed a potential lung disease treatment to United Therapeutics Corp. in a deal that could be worth more than $55 million.

The Israeli company said United Therapeutics licensed a treatment for pulmonary arterial hypertension, or high blood pressure in the blood vessels leading from the heart to the lungs. United Therapeutics will pay Pluristem $7 million upfront, and up to $48 million based on development and regulatory milestones. The Silver Spring, Md., company will cover all the costs of clinical trials, and will reimburse Pluristem for development and clinical work. Pluristem will also get royalty payments on any sales.

The deal gives United Therapeutics the ability to develop the drug and bring it to market in all markets where it is approved, while Pluristem will manufacture the treatment.

Pluristem said around 1,000 cases of pulmonary arterial hypertension are diagnosed every year in the U.S.

Pluristem, which is developing treatments for a variety of inflammatory conditions and diseases, does not have any products on the market. The company's shares climbed 11 cents, or 3.8 percent, to $3.01 in premarket trading. The shares closed at $2.98 Friday and have traded between 98 cents and $4.38 in the last year.