JV for USA's ACT and Korea's CHA Biotech

Massachusetts, USA-based Advanced Cell Technology and CHA Biotech, a South Korean biotechnology company focused on the development of stem-cell technologies, have formed an international joint venture.

To be called Allied Cell Technology, the new firm will develop human blood cells and other clinical therapies based on ACT's proprietary hemangioblast cell technology. The latter will exclusively license to the JV, which will be majority owned by CHA, all of its hemangioblast know-how. CHA will contribute working capital for the operation, as well as paying Advanced Cell a license fee of $500,000.

The new company will be located in Worcester, Massachusetts, and will include Young Chung and the hemangioblast team headed by Shi-Jiang Lu from ACT. Robert Lanza will continue to lead ACT's retinal program, but will serve in a consulting capacity as Allied's chief scientific advisor. Besides the exclusive license and transferring the hemangioblast team, ACT will collaborate with the JV in securing grants to further the R&D of the technology. It is anticipated that this program may one day help address the critical care shortage of blood for emergency situations including military needs. The technology has also been shown to repair vascular damage in animals after heart attacks, limb ischemia and diabetes, according to the companies.