CYTOMEDIX Announces Option Extension With Top 20 Global Pharmaceutical Company And Intent To Proceed To License Agreement For The AutoloGel System - Cytomedix to Receive Additional $2.5 Million Non-Refundable Payment

QualityStocks would like to highlight Cytomedix, Inc. (OTCBB: CMXI). The company develops, sells, and licenses regenerative biological therapies primarily for wound care, inflammation, and angiogenesis.  The company markets the AutoloGel™ System, a device for the production of autologous platelet rich plasma (“PRP”) gel for use on a variety of exuding wounds; the Angel® Whole Blood Separation System, a blood processing device and disposable products used for the separation of whole blood into red cells, platelet poor plasma (“PPP”) and PRP in surgical settings; and the activAT® Autologous Thrombin Processing Kit, which produces autologous thrombin serum from PPP.  The activAT® kit is sold exclusively in Europe and Canada, where it provides a completely autologous, safe alternative to bovine-derived products.  The company is pursuing a multi-faceted strategy to penetrate the chronic wound market with its products, as well as opportunities for the application of AutoloGel™ and PRP technology into other markets such as hair transplantation and orthopedics while actively seeking complementary products for the wound care market.

In the company’s news yesterday,

Cytomedix announced the official extension of the exclusive option period under the previously announced letter agreement first disclosed on October 14, 2011 and subsequently updated in an announcement on January 3, 2012.  In conjunction with the official option extension to June 30, 2012, Cytomedix will receive an additional $2.5 million non-refundable payment, which is expected to be received on or before February 15, 2012.The parties now intend to proceed to a formal negotiation of an exclusive license and supply agreement whereby the AutoloGel™ System would be distributed through a dedicated, hospital-based sales force.  The option holder has continued to request anonymity until such time as a definitive license and supply agreement is finalized and executed.  The expectation remains that any agreement will incorporate a modest incremental upfront license payment, an attractive product development milestone payment related to the second-generation AutoloGel separation device, and a profit-sharing arrangement on future U.S.-based sales of the AutoloGel System in the chronic wound care market.

The company will engage in additional knowledge transfer of clinical and marketing subject matter to the partner while continuing product development of the next generation AutoloGel separation device with a view towards submitting this proprietary separation enhancement for 501(k) approval to the FDA in the second quarter of 2012. During the interim license negotiation period, the potential partner expects to further shape its tactical product launch plans.

“We are especially pleased to extend the option period as it signifies that diligence on the part of our potential partner is complete and that all necessary corporate approvals to proceed are in place.  We believe the potential product synergies within this specific hospital-based and technically-oriented sales force can meaningfully accelerate adoption of the AutoloGel System,” said Martin P. Rosendale, Chief Executive Officer of Cytomedix.   “We have worked closely to jointly evaluate the significant market opportunity and look forward to the successful and timely conclusion of negotiations to a final agreement.”

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Forward-Looking Statement:

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