PetVivo Holdings, Inc., along with its wholly-owned subsidiaries PetVivo Animal Health, Inc., Cosmeta Corp, and PetVivo AI, Inc., announced on July 28, 2026, that it has entered into a Termination and Settlement Agreement with VetStem, Inc. Effective July 24, 2026, the agreement resolves all outstanding matters between the entities and terminates the Exclusive License and Supply Agreement for the PrecisePRP product line. By settling these claims for a fixed cost of $75,000, PetVivo eliminates lingering financial liabilities, including accrued royalties and milestone payments, allowing management to concentrate fully on advancing its proprietary technology portfolio, specifically the SPRYNG product with OsteoCushion Technology.

The settlement establishes an orderly transition of remaining inventory and commercial activities. Under the terms, all financial obligations arising from the prior license agreement—including outstanding invoices, accrued royalty obligations, and milestone payment obligations—have been fully satisfied and extinguished. The agreement includes mutual releases regarding substantially all claims, subject only to customary continuing obligations. PetVivo’s sole remaining financial obligation is an aggregate payment of $75,000, structured as two scheduled cash payments.

Settlement Terms and Inventory Reconciliation

The agreement includes an inventory reconciliation mechanism; if the transferred inventory is determined to be less than agreed minimum quantities following verification, PetVivo may be required to make an additional payment. The remaining PrecisePRP product inventory will be returned to VetStem. Notably, the previously issued warrant held by VetStem to purchase 250,000 shares of PetVivo common stock remains in full force and effect according to its existing terms.

John Lai, Chief Executive Officer of PetVivo Holdings, stated that the agreement represents the successful conclusion of the commercial relationship with VetStem, enabling both companies to move forward independently. He emphasized that the resolution allows PetVivo to devote its full attention and resources to advancing proprietary technologies, including SPRYNG with OsteoCushion Technology, while executing broader strategic growth initiatives.

Strategic Focus Shift

With the PrecisePRP license terminated, PetVivo is pivoting entirely toward its internal pipeline. The company’s lead product, SPRYNG with OsteoCushion Technology, is a veterinarian-administered intra-articular injection for managing lameness and joint afflictions in cats, dogs, and horses. This product is currently available for commercial sale. PetVivo’s strategy leverages human therapies for companion animals to achieve accelerated timelines to revenue compared to more stringently regulated pharmaceuticals. The company holds a portfolio of twelve patents and six trade secrets protecting its biomaterials and production processes.

PetVivo Holdings filed a Current Report on Form 8-K with the Securities and Exchange Commission describing the agreement in greater detail. The move signals a consolidation of efforts around its owned intellectual property rather than licensed third-party products, potentially improving margin profiles if proprietary sales scale effectively.

PetVivo Holdings announced positive results from a peer-reviewed study evaluating its Spryng treatment for canine osteoarthritis and cranial cruciate ligament disease. The study found that 55% of enrolled dogs achieved at least a 25% improvement in the primary endpoint, the modified Glasgow Composite Pain Scale (mGCPS). Statistically significant improvements were observed across all additional clinician- and owner-assessed outcome measures during the 84-day evaluation period.

The prospective proof-of-concept study enrolled 40 client-owned dogs diagnosed with unilateral suspected cranial cruciate disease and osteoarthritis. Each dog received a single intra-articular injection of the collagen-elastin hydrogel microparticulate biomaterial. Evaluations included serial clinical examinations, the mGCPS, clinician assessments, and owner-reported outcome measures.

Key Findings

The investigators concluded that the biomaterial demonstrated feasibility for use in dogs with suspected cranial cruciate disease and stifle osteoarthritis within the subjective parameters evaluated. They noted that further studies utilizing objective outcome measures are warranted.

The study was funded by PetVivo Holdings, Inc. and conducted by participating investigators. The findings were evaluated and accepted for publication through the independent peer-review process of Veterinary Record.