RNL Bio exports stem cell technology to Japan

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) June 5, 2008 --

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RNL Bio exports stem cell technology to Japan

RNL Bio Co Ltd., a premier Korean biotech company, dedicated to the commercialization of adult stem cell therapeutics for various human degenerative ailments has signed a licensing agreement with Seems, Inc, a Japanese biotech company for RNL’s stem cell technology. Under the terms of the agreement, Seems, Inc. will pay 6 million dollars up front with 5% royalties of related sales revenue for the right to use RNL’s stem cell technology to establish stem cell banks and to sell the stem cell therapeutics developed by RNL Bio, in Japan. This deal is the first technology export to Japan from the Korean stem cell industry. It is also significant in that RNL Bio’s development of their stem cell technology is recognized by a developed country like Japan. The need for regenerative medicine is expected to grow in Japan’s aging population.

RNL Bio has established ‘Biostar’, the first and largest stem cell bank in Korea, preserving members’ stem cells from fat, umbilical cord or placenta. RNL is also developing stem cell therapeutics in Phase I or I/II clinical trials for Buerger’s Disease and osteoarthritis using its proprietary technology for the isolation and expansion of stem cells. Seems, Inc. was incorporated in Japan in 2000. It has developed air purifying devices and diagnostic sensors using nano technology. Seems, Inc. will be granted the rights to use the technology for stem cell manipulation and preservation from RNL Bio. It will take approximately six months for it to establish a stem cell bank in Japan. RNL expects royalties from Seems starting next year. RNL, in collaboration with Seems, Inc, is not only starting stem cell banking business but also entering cosmetic surgery market through networking with renowned plastic surgeons and clinics in Japan.

In Japan, thanks to the ‘Advanced Medical Techonology Act’, physicians are allowed to transplant stem cells by their own discretion as long as the cells are autologous or are derived from the patients’ own tissue. RNL estimates the market size for stem cell therapeutics will grow more than 10 billion dollars by 2018. Royalties could be more than one hundred million dollars in the next ten years. RNL also plans to send domestic patients to its affiliated medical centers in Japan for stem cell treatments for hair loss or facial wrinkle as cosmetic needs. RNL Bio’s stem cell therapeutics are designed to regenerate blood vessels, nerve cells or chondrocytes by injecting stem cells purified from patients’ own fat tissue and expanded using RNL’s proprietary technology. This treatment is delivered via local injection and does not require any invasive surgeries. It is not only simpler but safer because patients’ own stem cells do not involve any immune rejections. More over, stem cells are stored in stem cell banks and are used repeatedly on demand. The agreement between the two companies will also include the Japan Animal Referral Medical Center’s access to stem cell therapy technology for animals and dog cloning.
Dr. Ra, Jeong-Chan, CEO of RNL Bio, said with confidence “I am very encouraged that we get leg up in the bigger and advanced Japanese medical market by our technology. It is a post stone for turning our technology into high value added medical products and services that will play a key role as the next generation growth engine." RNL Bio will continue to expand the licensing opportunities to more counties.

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