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Cynata Therapeutics (ASX:CYP) has been granted a patent by the European Patent Office (EPO) covering its proprietary Cymerus™ mesenchymal stem cell (MSC) technology.

This follows the Notice of Allowance that was received from the EPO earlier this year.

The patent is owned by the University of Wisconsin– Madison’s Wisconsin Alumni Research Foundation (WARF) and is among the intellectual property licensed exclusively from WARF to Cynata.

Cynata is also expecting to receive a patent from IP Australia shortly, following the Notice of Acceptance in January this year.

Cynata boasts an extensive portfolio of patents that are key to the protection of its unique stem cell manufacturing platform and the cell-based therapeutics that are derived from the platform.

Read more: Cynata Therapeutics has an extensive portfolio of patents and it continues to grow

The US Patent and Tradesmark Office (USPTO) granted a patent last year covering aspects of the Cymerus platform and the Japanese Patent and Trademark Office also granted a similar patent in 2016.

The latest patent granted by the EPO has a remaining 15-year term.

Dr Ross Macdonald, Cynata’s Chief Executive Officer welcomed the approval of the patent.

“We are very pleased with this important development in our goal to continue to strengthen our robust intellectual property assets around Cymerus, our therapeutic stem cell platform technology.”

Importantly, Cynata’s strategic partner Fujifilm also commented on the granting of the patent with its Director Corporate Vice President, Mr. Junji Okada, stating that,

“this new patent is a significant advancement in the protection of the intellectual property around Cynata’s Cymerus technology. We look forward to working with Cynata to finalise the license agreement.”

The comment from Fujifilm is important because it validates their commitment to Cynata’s technology and the GvHD license agreement.

This is following a delay last month in the exercise of the licence option agreement that it has in place with Cynata.

The option has been delayed for 6 months to “accommodate certain requests made by Fujifilm in relation to structural aspects of the GvHD license agreement.”

Shaw and Partners analyst Darren Vincent said in his recent analyst note that he has a strong belief in Fujifilm’s commitment and stated several reasons to support this belief.

These included Fujifilm’s legal team being focused on its latest US$900 million acquisition of Biogen, that may have led to the delay, and a number of Fujifilm presentations and advertising collateral that reinforced its commitment to Cynata’s technology.

The Shaws analyst note stood by a target price of $2.50 and its ‘buy’ recommendation stating that, “with the share price coming back from recent highs and a firm belief Fujifilm will exercise the option, it creates a more attractive buying opportunity right now.”

This content is produced by Star Investing in commercial partnership with Cynata Therapeutics. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.