EcoQuest takes greater stake in U.S. biotech 

(MENAFN - ProactiveInvestors - Australia) EcoQuest (ASX: ECQ) has increased its investment in U.S.-based emerging biotechnology company Cynata Incorporated taking its interest in the company to 29%.

The company has entered into an agreement to acquire a further 18% of the issued capital of Cynata Incorporated, which specialises in multi-purpose stem cell technology for regenerative medicine.

EcoQuest has subscribed for 12.5 million shares at US0.04 each, for a total consideration of US500,000.

EcoQuest previously held an 11% interest in Cynata, which was formed to commercialise stem cell technology from the University of Wisconsin-Madison.

Cynata's plan is develop the technology into an "off-the-shelf" therapeutic stem cell platform to be used in therapeutic products.

The cells stimulate the formation of new blood vessels in damaged tissue, and as a result have great potential to treat diseases requiring revascularisation.

Cynata's initial focus is on critical limb ischemia, a severe consequence of diabetes, causing severe pain, ulcers, and gangrene.

The regenerative medicine market represents a major growth segment.

Through its investment in Cynata, EcoQuest will gain exposure to a 3 billion market opportunity focused on the complications of diabetes alone.

Further development will target other complications of diabetes, other indications involving a loss of circulation or damaged blood vessels and Graft versus Host disease. These conditions represent a market worth over 10 billion.