Healthcare holdings company Generex Biotechnology Corporation (OTC:GNBT) revealed on Wednesday the launch of a Letter of Intent to acquire 51% of Olaregen Therapeutix Inc for an initial payment of USD400,000, with a plan to close the transaction in the coming weeks.

Olaregen Therapeutix Inc is a regenerative medicine company focused on the development, manufacturing and commercialisation of products that fill unmet needs in the current wound care market. The company aims to provide advanced healing solutions that substantially improve medical outcomes while lowering the overall cost of care. Its mission is to become a significant force in regenerative medicine and advance the science of healing.

In conjunction, Olaregen Therapeutix Inc will introduce its first product, Excellagen, a flowable dermal matrix that is a 510K US FDA cleared medical device for utilisation for a variety of wound types that has recently been awarded a US patent with a 17 year right of exclusivity.

The company added Excellagen is a highly-purified Type 1 collagen-based, flowable gel formulation approved for 17 indications, including partial and full thickness wounds, pressure ulcers, venous ulcers, diabetic ulcers, chronic vascular ulcers, tunnelled/undermined wounds, surgical wounds (donor sites/grafts, post-Mohs surgery, post-laser surgery, podiatric, wound dehiscence), trauma wounds (abrasions, lacerations, second- degree burns, and skin tears) and draining wounds.

Following the planned acquisition, Olaregen's pipeline will focus on developing Excellasome for the regeneration of bones, joints and cartilage. R&D efforts will address the use of Excellasome in the treatment Osteo and Rheumatoid Arthritis, cartilage repair and plantar fasciitis.