Elevai Labs Inc., a pharmaceutical company specializing in the development of cell therapies, has modified its existing license agreement with INmune Bio Inc., according to a recent SEC filing. The amendment, dated July 9, 2024, revises the terms related to the technology transfer fee payable to INmune.
The original license agreement entered into on January 16, 2023, granted Elevai worldwide exclusive and non-exclusive rights to develop, manufacture, and commercialize INmune's EMx technology. This technology involves proprietary equipment, processes, and consumables for isolating and manufacturing mesenchymal stromal cells derived from the human umbilical cord in compliance with current Good Manufacturing Practices.
Under the amendment, specific financial terms of the agreement, including the tech transfer fee, have been updated. Details of the financial adjustments were not disclosed in the filing, as the company intends to keep certain information private and confidential under Regulation S-K, Item 601(b)(10).
Elevai Labs, headquartered in Newport Beach, California, is listed on The Nasdaq Stock Market LLC under the ticker symbol NASDAQ:ELAB. The company is classified as an emerging growth company and has chosen not to use the extended transition period for complying with new or revised financial accounting standards provided under Section 13(a) of the Exchange Act.
This report is based on a press release statement.
In other recent news, Elevai Labs has secured a $200,000 unsecured credit line from NorthStrive Fund II LLP, providing the company with additional capital flexibility.
The credit line carries a 20% interest rate per annum on the outstanding principal balance. In a strategic move, Elevai Labs has also announced the formation of two wholly owned subsidiaries, Elevai Biosciences, Inc., and Elevai Skincare, Inc. These subsidiaries will focus on developing advanced aesthetic medicines and improving the commercial success of its exosome skincare brand, respectively.
In addition, Elevai Labs has acquired exclusive licensing rights for two novel drug candidates aimed at treating obesity and preventing muscle loss from South Korean company MOA Life Plus Co., Ltd. The company plans to submit an Investigational New Drug (IND) application for one of these candidates, EL-22, in 2025.
Lastly, Elevai Labs has entered into an exclusive distribution agreement with ILIA International Ltd. for its exosome-based skincare products in Taiwan. These are recent developments from Elevai Labs.
InvestingPro Insights
As Elevai Labs Inc. continues to refine its business strategies, including the recent amendment to their license agreement with INmune Bio Inc., investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Elevai's market capitalization stands at a modest 9.92 million USD, reflecting the scale of the company in the biopharmaceutical landscape. The firm's impressive gross profit margin, which is at 67.84% for the last twelve months as of Q1 2024, indicates a strong capacity to generate profit from its sales, a vital aspect for potential growth and reinvestment in its innovative cell therapies. However, it is important to note that Elevai has not been profitable over the last twelve months, with a negative price-to-earnings (P/E) ratio of -1.59, indicating that the company is currently not generating earnings to support its share price.
InvestingPro Tips highlight that while Elevai holds more cash than debt on its balance sheet, suggesting a good liquidity position, the company is also quickly burning through cash, which could raise concerns about long-term sustainability. Additionally, the stock is trading near its 52-week low, which might be a point of interest for bargain-seeking investors, especially as the RSI suggests the stock is in oversold territory. For those considering capitalizing on this potential opportunity, remember that InvestingPro offers additional insights and tips. To access these, visit https://www.investing.com/pro/ELAB and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 13 more InvestingPro Tips available that could help inform your investment decisions regarding Elevai Labs.
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