ReNeuron Holdings plc, a leading British bio-pharmaceutical company focused on treatment of brain disorders, and VistaGen Inc, a private US biotechnology company developing a portfolio of in vitro stem cell technologies, announced a broad strategic alliance to exploit the considerable commercial potential of their stem cell drug discovery and predictive screening platforms.

Initially, the companies will focus on the use of human neural stem cells from multiple regions of the brain and spinal cord. Disorders of the brain and central nervous system (CNS) are the most prevalent health care problems in the western world - affecting approximately 100 million people. The alliance also will involve isolating human tissue-restricted stem cells from several different key anatomical regions important to drug development.

In exchange for a equity stake in VistaGen, ReNeuron will license to VistaGen exclusive worldwide rights, for in vitro predictive screening of drug candidates for toxicity and efficacy, to ReNeuron's stem cell technology and granted to VistaGen access to all of ReNeuron's human neuronal stem cells, ReNeuron also purchased VistaGen equity and licensed to VistaGen certain non-exclusive rights to ReNeuron technology and cell lines for drug discovery. The parties will share revenues generated from VistaGen's commercial exploitation of these cells. In addition, in a jointly funded collaboration, ReNeuron will use its proprietary cell immortalising technologies to develop stem cells from several different key anatomical regions. VistaGen's rights to these additional stem cells will be similar to those it received to ReNeuron's human neural stem cells.

Dr Martin Edwards, Chief Executive Officer of ReNeuron, said: "The potential for stem cells in drug discovery is large and best exploited through this type of broad collaboration where each company brings a synergistic set of skills which can be applied rapidly to the drug discovery process. We look forward to a long and fruitful collaboration with VistaGen".