Matricelf Ltd. (TASE: MTLF) Signs MOU to Establish Subsidiary for Commercialization of Parkinson's Disease Therapy
Matricelf Ltd. (TASE: MTLF) Signs MOU to Establish Subsidiary for Commercialization of Parkinson's Disease Therapy |
| [03-March-2026] |
NESS ZIONA, Israel, March 3, 2026 /PRNewswire/ -- Matricelf Ltd. (TASE: MTLF), a biotechnology company developing autologous engineered tissue therapies, today announced that it has signed a Memorandum of Understanding, subject to the execution of a definitive agreement and satisfaction of customary closing conditions, to establish a dedicated subsidiary for the research, development, and commercialization of the Company's technology for the treatment of Parkinson's disease. The agreement follows the Company's January 27, 2026 announcement regarding preliminary non binding discussions on this initiative. The subsidiary will focus on applying Matricelf's proprietary autologous cell and tissue engineering platform to Parkinson's disease and Parkinsonism indications. Strategic Rationale The establishment of a dedicated subsidiary is designed to enable focused managerial attention, capital allocation, and development strategy for the Parkinson's indication, while allowing the parent company to maintain strategic and economic exposure to the program. This structure is intended to facilitate dedicated capital raising at the subsidiary level without requiring equity issuance at the parent company level. Matricelf is expected to retain a significant equity stake alongside defined revenue participation mechanisms, potentially creating long term value for shareholders. Overview of Parkinson's Disease Market Opportunity Parkinson's disease is a progressive neurodegenerative brain disorder characterized primarily by motor symptoms such as tremor, bradykinesia, and rigidity, as well as non motor symptoms including sleep disturbances, pain, and cognitive changes. There is currently no cure, and treatments focus on symptom management. According to the World Health Organization, the prevalence of Parkinson's disease has doubled over the past 25 years, with more than 8.5 million people living with the condition worldwide as of 2019. Market research estimates the global Parkinson's treatment market at approximately USD 5.65 billion in 2024, projected to grow to approximately USD 7.58 billion by 2030. Transaction Structure Under the proposed structure:
In addition, Matricelf will be entitled to the higher of:
In the event of a sale of more than 51% of the subsidiary's shares or an initial public offering of the subsidiary, Matricelf will be entitled to a 10% success fee from the total consideration received. The subsidiary will also enter into a development services agreement with Matricelf, with a minimum annual R&D budget of USD 1 million for 2 years. Leadership and Governance Upon completion of the transaction:
Ron Miron, Chairman of the Board of Matricelf, stated: "The establishment of a dedicated subsidiary for the development and commercialization of our Parkinson's program represents another significant step in executing our strategy, which leverages our autologous cell and advanced tissue engineering platform. We view this as the first milestone in expanding Matricelf's activities across neurological indications and potentially establishing additional focused subsidiaries built upon our core technological capabilities". Conditions to Closing Completion of the transaction is subject to execution of a definitive agreement by April 23, 2026, completion of the subsidiary financing, approval by relevant corporate bodies of the Company, and consent from Ramot at Tel Aviv University, among other customary conditions. There can be no assurance that the definitive agreement will be executed or that the transaction will be completed on the terms described or at all. About Matricelf Ltd. Matricelf Ltd. (TASE: MTLF) is a regenerative medicine company developing personalized autologous engineered tissue therapies based on proprietary stem cell and hydrogel technologies. The Company's platform is initially focused on spinal cord injury and is expanding into additional neurological indications. Forward Looking Statements This press release contains forward looking statements regarding the proposed subsidiary, completion of the financing, execution of a definitive agreement, regulatory approvals, commercialization potential, and future strategic expansion. These statements are subject to risks and uncertainties and there can be no assurance that the transaction will be completed or that expected benefits will be realized. CONTACT INFO:
SOURCE Matricelf Ltd. | ||
Company Codes: OTC-PINK:MTRLF,TASE:MTLF,TelAviv:MTLF,TelAviv:MTLF.TA |
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