Fort Collins biomedical startup acquires Neocart assets

FORT COLLINS — A Fort Collins startup that aims to develop technologies that address the continuum of health care for specific types of human disease has added a new technology that it hopes will form the basis of its platform.

Medavate Corp., based at 3003 E. Harmony Road, Suite 410A, signed an agreement May 8 to acquire “substantially all” of the assets related to the Neocart regenerative-knee treatment from Histogenics Corp. (Nasdaq: HSGX), a troubled Boston-based company that is being absorbed into Ocugen Inc., based in Malvern, Pa.

Medavate will pay $6.5 million for the technology, conditional on approval by Histogenics shareholders and other closing conditions, according to a Medavate press release. The deal is expected to close later in 2019.

Histogenics reported the transaction in a filing with the U.S. Securities and Exchange Commission, reporting that it “has agreed to sell substantially all of the assets related to its Neocart program, including, without limitation, intellectual property, business and license agreements and clinical trial data in return for a cash payment of $6.5 million.”

Neocart is designed to rebuild a patient’s own knee cartilage to treat pain at the source and potentially prevent a patient’s progression to osteoarthritis, according to the Histogenics website. Histogenics in the third quarter of 2018 completed Phase 3 clinical trials of the technology, but the company announced in December that the U.S. Food and Drug Administration would require an additional trial before it would accept a Biologics License Application for Neocart.

Histogenics lacked financial resources to proceed with an additional trial, however, and announced in December that it would implement a restructuring plan and evaluate strategic alternatives, including sale of assets, a merger, joint venture or Chapter 11 bankruptcy.

The sale of Neocart helped it avoid that last scenario, and its status as a public company proved valuable to Ocugen.

For Medavate, Neocart could become the cornerstone for its regenerative-medicine and precision health-care division, Michael Handley, Medavate CEO, said in a written statement.

“The long clinical and manufacturing history of NeoCart may provide patients and surgeons compelling pain and functional improvements not served by current therapies,” Handley said. “The recent Phase 3 NeoCart trial and data, with market leading meaningful outcomes as early as 6 month and 1 year, have been received favorably by patients and surgeons and we look forward to being able to partner with leading clinicians and scientists to commercialize this product.”

Handley in September 2018 was named CEO of Fort Collins-based Marizyme Inc. (OTX: MRZM), a Fort Collins-based biopharmaceutical company, but resigned in March. [See related story.]

Medavate intends to provide services and products beyond medical treatment. The company’s website also references MedaBanc, designed to integrate banking infrastructure and credit/capital resources with health-care administrative operations and patients to reduce health-care costs and, ultimately, increase patient’s access to care.

The company also is developing a “learning health-care” system, which would aggregate disparate silos of health-care data, such as electronic medical records, physician notes and prescriptions. The system would also obtain information from patients directly, helping reveal whether the treatment should be continued or halted if ineffective.

The system “will collect real-time data from patients that normally are not collected by using sensors in every patient contacting device to collect a range of data real-time from BP, HR, blood glucose to temperature,” according to the company’s website. “This platform will allow Medavate to create a system that learns from millions of patients treated what should work and what most likely will not work and will continually improve patient outcomes.”

FORT COLLINS — A Fort Collins startup that aims to develop technologies that address the continuum of health care for specific types of human disease has added a new technology that it hopes will form the basis of its platform.

Medavate Corp., based at 3003 E. Harmony Road, Suite 410A, signed an agreement May 8 to acquire “substantially all” of the assets related to the Neocart regenerative-knee treatment from Histogenics Corp. (Nasdaq: HSGX), a troubled Boston-based company that is being absorbed into Ocugen Inc., based in Malvern, Pa.

Medavate will pay $6.5 million for the technology, conditional on approval by Histogenics shareholders and other closing conditions, according to a Medavate press release. The deal is expected to close later in 2019.

Histogenics reported the transaction in a filing with the U.S. Securities and Exchange Commission, reporting that it “has agreed to sell substantially all of the assets related to its Neocart program, including, without limitation, intellectual property, business and license agreements and clinical trial data in return for a cash payment of $6.5 million.”

Neocart is designed to rebuild a patient’s own knee cartilage to treat pain at the source and potentially prevent a patient’s progression to osteoarthritis, according to the Histogenics website. Histogenics in the third quarter of 2018 completed Phase 3 clinical trials of the technology, but the company announced in December that the U.S. Food and Drug Administration would require an additional trial before it would accept a Biologics License Application for Neocart.

Histogenics lacked financial resources to proceed with an additional…