Novoheart announced that it has entered into a service agreement with Xellera Therapeutics Limited, representing Phase 1 of an intended long-term strategic partnership between the companies. The vision of the long-term partnership is to build clinical-grade human stem cell libraries for the development of cell-based therapies. Phase 1 will focus on the first steps towards Xellera Therapeutics building a Good Manufacturing Practice (GMP) facility for generating clinical-grade human stem cell lines, initially within the Southern Chinese population. Under the service agreement, Novoheart has agreed to assist in the development of the haplobank of clinical-grade stem cells. Phase 1 will generate $1.7 million of revenue for Novoheart, with the services anticipated to be provided over the next 6 to 9 months. As part of the agreement, Novoheart will have exclusive rights to the human stem cell lines for producing clinical-grade human heart cells and cardiac derivatives, which it can commercialize at its discretion for research and therapeutic use. This arrangement will allow Novoheart to build a valuable new bank of clinical-grade, haplotype-matched human heart cells to develop cell-based heart therapies, and will further expand its offering into clinical applications, in addition to preclinical drug screening with the MyHeartTM Platform.