Elevai Labs (NASDAQ: ELAB) stock plummeted nearly 19% on Tuesday following the acquisition of the Worldwide License Agreement for Proprietary Stem Cell Manufacturing Technology.
Elevai Labs (ELAB) has signed an exclusive worldwide manufacturing and processing technology licensing agreement with INmune Bio (NASDAQ: INMB). This agreement grants Elevai a license to use INmune Bio’s proprietary “EMx” technology developed by INmune Bio, Inc.’s CMO, Mark Lowdell, PhD.
According to the terms of the agreement, Elevai Labs (NASDAQ: ELAB) will submit an initial deposit for the license in two payments spanning six months, with a final tech transfer fee due within two years of formalizing the agreement. In addition, as part of the terms, Elevai will be obligated to pay a nominal royalty on the sales of licensed topical cosmetic products using the “EMx” technology.
The “EMx” technology enables Elevai to manufacture current Good Manufacturing Practice (cGMP) grade human umbilical cord-derived mesenchymal stromal cells (hucMSCs) at a lower cost than purchasing them outright. These manufactured hucMSCs can be incorporated into certain licensed topical cosmetic products sold in the medical aesthetics skincare market.
Elevai views the “EMx” technology integration into its operations as a pivotal move towards achieving the company’s goal of vertical manufacturing integration. This move is expected to increase long-term production capabilities and decrease overall costs.
Elevai aims to have greater control over its processes throughout the product pipeline, leveraging efficient technologies like “EMx.” The company anticipates this approach will allow greater stem cell consistency and purity, strengthening Elevai’s position as an industry innovator in the medical aesthetics skincare market.
Mary Lee is a freelance writer and journalist based in Toronto, Canada. She holds an M.S. degree in business and economic journalism from Columbia University’s Graduate School of Journalism in New York and a certificate in digital marketing from the University of Toronto.
