Athersys and Pfizer join forces to use stem cells to treat IBD

Client(s) Athersys, Inc.

Jones Day represented Athersys, Inc. in its agreement with Pfizer to develop and commercialize Athersys' MultiStem(R) stem cell line for the treatment of Inflammatory Bowel Disease. Under the terms of the agreement, Athersys will receive an up-front cash payment of $6 million from Pfizer, as well as research funding and support during the initial phase of the collaboration. In addition, Athersys is also eligible to receive milestone payments of up to $105 million upon the successful achievement of certain development, regulatory and commercial milestones. Pfizer will have responsibility for development, regulatory and commercialization and will pay Athersys tiered royalties on worldwide commercial sales of MultiStem IBD products. Alternatively, in lieu of royalties and certain commercialization milestones, Athersys may elect to co-develop with Pfizer and the parties will share development and commercialization expenses and profits/losses on an agreed basis beginning at phase III clinical development.