ElpasBio Holdings ("ElpasBio"), a leading clinical-stage biotechnology company focused on regenerative medicine, announced that it has entered into a collaboration agreement with Fosun Kairos for the commercialization of ElpasBio's investigational allogeneic human adipose-derived mesenchymal stem cell (haMPC) therapy, lotazadromcel (trade name AlloJoin®) for the treatment of knee osteoarthritis (KOA) in Mainland China, Hong Kong SAR, and Macau SAR.

AlloJoin® is ElpasBio's core investigational, off-the-shelf stem cell product, developed entirely in-house based on its proprietary haMPC technology platform and protected by independent intellectual property rights. The therapy is being explored for its potential to provide safe and durable symptom relief for KOA patients by suppressing inflammation and promoting the repair of damaged cartilage, with the goal of becoming the world's first approved regenerative medicine product with the potential to modify the progression of KOA. AlloJoin® is currently being studied in a Phase III pivotal clinical trial in KOA in China, following the completion of Phase I and Phase II clinical studies that demonstrated favorable safety profile, along with significant improvement in the symptoms of knee joint pain and stiffness in KOA patients. Leveraging Fosun Kairos's commercialization expertise and market insights in the cell therapy sector, ElpasBio has granted Fosun Kairos exclusive commercialization rights of AlloJoin® in Mainland China, Hong Kong SAR, and Macau SAR.

"Fosun Kairos carries extensive experience in the commercialization of cell therapies in China, providing a strong foundation for a robust and mutually beneficial partnership," said Tony (Bizuo) Liu, Chairman of ElpasBio. "AlloJoin® is the first stem cell drug approved in China to enter into a Phase III pivotal clinical trial with the disease modifying potential for the treatment of KOA. We believe this collaboration will accelerate the successful commercialization of AlloJoin® in China and bring us closer to addressing the significant unmet medical needs of KOA, a degenerative disease."

Wenjie Zhang, Chairman of Fosun Kairos, stated, "ElpasBio is a recognized leader in stem cell therapies, with more than a decade of dedicated expertise in the field. We are pleased to partner with ElpasBio to take responsibility for the commercialization of AlloJoin® in Mainland China, Hong Kong SAR, and Macau SAR. By combining Fosun Kairos's commercialization capabilities in cell therapy, we believe this product candidate with the disease-modifying potential can benefit a broader population of patients with KOA in China."

Under the terms of the agreement, ElpasBio will receive an upfront payment and milestone payments. ElpasBio will continue to be responsible for the development, regulatory registration, and manufacturing of AlloJoin® in Mainland China, Hong Kong SAR, and Macau SAR, and will retain all commercialization rights outside these territories.