Athersys Restructures Debt with Supplier

Athersys, Inc. (NASDAQ: ATHX), a regenerative medicine company developing MultiStem (invimestrocel) cell therapy for critical care indications announced it has restructured its outstanding debt with a supplier (“the supplier”). The Company previously entered into agreements with the supplier to assist in the scale-up and manufacturing of clinical and commercial grade MultiStem using Athersys’ bioreactor production processes.

Under the new agreement, Athersys will pay the supplier $11.8 million in monthly cash payments of $250,000 each, beginning October 2023. In addition, Athersys has issued a $15 million convertible note. The three-year note carries interest of 10.0% and is convertible after 18 months into Athersys common stock at $1.30 per share, at the supplier’s sole discretion.

The restructured agreement provides the supplier with the right of first refusal to supply 50% of all material required to manufacture MultiStem until five years after MultiStem receives regulatory approval for commercial sale.

“I’m delighted to announce the successful restructuring of our agreement with our supplier. This liability represented more than 80% of our accounts payable balance and was largely driven by commitments made prior to the release of the TREASURE trial results,” said Dan Camardo, Chief Executive Officer of Athersys. “This new agreement reflects Athersys’ post-restructuring development and manufacturing needs, which prioritize MultiStem for the treatment of ischemic stroke. Following our successful Type B Meeting with the FDA, we gained a clear understanding of our timeline to complete the MASTERS-2 trial which was an important step in negotiating this agreement.”

About MultiStem

MultiStem (invimestrocel) cell therapy is a patented regenerative medicine product in clinical development that has shown the ability to promote tissue repair and healing in a variety of ways, such as through the production of therapeutic factors in response to signals of inflammation and tissue damage. MultiStem therapy’s potential for multidimensional therapeutic impact distinguishes it from traditional biopharmaceutical therapies focused on a single mechanism of benefit. The therapy represents a unique "off-the-shelf" stem cell product that can be manufactured in a scalable manner, may be stored for years in frozen form, and is administered without tissue matching or the need for immune suppression. Based upon its efficacy profile, its novel mechanisms of action, and a favorable and consistent tolerability demonstrated in clinical studies, we believe that MultiStem therapy could provide a meaningful benefit to patients, including those suffering from serious diseases and conditions with unmet medical need.