Orgenesis licenses IP covering diabetes therapy - $ORGS

ORGS News Update:

Tel Hashomer Medical Research Infrastructure and Services Ltd. (Tel Hashomer, Israel) granted Orgenesis Inc. (OTCBB: ORGS) an exclusive license to develop and commercialize IP covering functional autologous insulin-producing cells (AIPC) regeneration technology as a therapy for diabetes. Tel Hashomer will receive an annual fee of $15,000, and is eligible for up to $3 million in milestones, plus a 3.5% royalty. Tel Hashomer is also eligible for 16% of all sublicensing fees. The AIPC technology involves the use of a patient's own liver cells to generate functional insulin-producing autologous cells, which can then be transplanted back into a patient's liver. Orgenesis gained $0.81 (117%) to $1.50 on Tuesday.

Daily Dose Comment: This is interesting news but our concern is that the AIPC technology will still be at risk from being destroyed by the same auto-immune reaction that wiped out the patients islet cells int he first place. We would focus on islet biosciences (using porcine islet cells encapsulated in an algenate) as a more compelling technology. We like this company born from the ashes of the old micro-islet.