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Lisata Therapeutics, Inc. (NASDAQ:LSTA), a small-cap biotech company with a market capitalization of $22.33 million and currently trading at $2.57, announced Wednesday it has entered into a worldwide non-exclusive license agreement with Catalent, Inc. According to InvestingPro analysis, the company appears fairly valued based on its comprehensive Fair Value calculations. Under the terms of the agreement, Lisata granted Catalent certain rights to use its iRGD cyclic peptide, certepetide, as an antibody drug conjugate (ADC) payload within Catalent’s SMARTag ADC platform.
Catalent will be responsible for all research, development, and commercialization costs related to the licensed technology. According to the agreement, Lisata is eligible to receive development milestone payments totaling up to $10.5 million. The company may also receive tiered revenue sharing on future sales or partnerships, subject to specified royalty reductions, as well as a portion of any sublicense consideration if Catalent grants further sublicenses under the licensed rights.
The agreement remains in effect on a product-by-product and country-by-country basis until the end of the royalty term. Either party may terminate the agreement in the event of a material breach, subject to notice and cure provisions, or in the case of bankruptcy or insolvency of the other party. Catalent also has the option to terminate the agreement at any time with at least 30 days’ written notice.
As part of the agreement, Catalent has granted Lisata a right of first negotiation for a license if Catalent initiates an organized out-licensing process for any asset resulting from the agreement.
This information is based on a statement from a Securities and Exchange Commission filing made by Lisata Therapeutics. The company’s stock has shown strong momentum, posting a 27.65% return over the past six months. Discover more insights about LSTA and access comprehensive analysis through the InvestingPro Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, Lisata Therapeutics reported its second-quarter earnings, surpassing expectations with an earnings per share (EPS) of -$0.54, beating the analyst estimates of -$0.66 and -$0.65. The company also reported revenue of $70,000 from a research license agreement with Catalent Inc. H.C. Wainwright maintained its Buy rating for Lisata Therapeutics, setting a price target of $15.00, following the positive earnings results and updates on the company’s pipeline. Lisata ended the quarter with approximately $22 million in cash, which the management believes will support ongoing and proposed trials through the fourth quarter of 2026.
In another development, Catalent Inc. has obtained global non-exclusive rights to evaluate Lisata Therapeutics’ certepetide for use in antibody-drug conjugates (ADCs). This agreement allows Catalent to incorporate the proprietary peptide into ADCs developed using its SMARTag technology platform. The collaboration between the two companies highlights their commitment to advancing innovative therapies. These recent developments reflect significant progress for both Lisata Therapeutics and Catalent Inc.
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