Positive STEP data and Japan patent grant

Regeneus announced that its Phase I STEP knee osteoarthritis (OA) trial met its primary safety endpoint at 12 months and produced promising signs of efficacy, including clinically meaningful reductions in pain for the majority of patients and improvement in knee cartilage volume. Separately, it has also been granted a key patent that protects Progenza in Japan until 2032. The positive data and patent grant will be helpful as the company seeks to advance licensing discussions for Progenza for OA and other indications in Japan (in conjunction with JV partner AGC). We increase our valuation to A$145m or A$0.70/share.