Monday January 3, 4:56 pm Eastern Time
Company Press Release
CytoTherapeutics Sells Encapsulated Cell Technology
to Neurotech S.A.
SUNNYVALE, Calif.--(BW HealthWire)--Jan. 3, 2000-- CytoTherapeutics, Inc. (Nasdaq:CTII - news) announced today it
has sold its Encapsulated Cell Technology (ECT) to Neurotech S.A., and will remain concentrated on its core business of stem
cell technology. CytoTherapeutics will receive an initial payment of $3 million, royalties on future product sales, and a portion of
certain Neurotech revenues from third parties in return for the assignment to Neurotech of intellectual property assets relating to
ECT. In addition, CytoTherapeutics has retained certain non-exclusive rights to use ECT in combination with its proprietary
stem cell technology, and in the field of vaccines for prevention and treatment of infectious diseases.
Neurotech S.A. is a privately held French company, engaged in the pre-clinical and clinical development of cell-based therapies
in the central nervous system and the eye.
The sale of ECT is another step in CytoTherapeutics' previously announced plan for restructuring its operations to focus on the
development of its stem cell technologies. The Company has relocated its headquarters from Rhode Island, where the ECT
activity was previously based, to the Sunnyvale, California, location of its wholly owned subsidiary, StemCells, Inc.
CytoTherapeutics plans to dispose of its pilot manufacturing plant and its former corporate headquarters and ECT research
facility in Rhode Island as part of the restructuring.
''We are extremely pleased that the encapsulated cell technology will go forward at Neurotech, as we devote our business to
our stem cell programs,'' said CytoTherapeutics President and Chief Executive Officer Richard M. Rose, MD. ''In the future,
CytoTherapeutics stands to benefit from the successful development of the ECT technology through royalty payments and a
sharing of proceeds associated with certain new partnerships related to the ECT technology.''
''Neurotech is fully committed to this new technology,'' said Dr. Tom Shepherd, President and Chief Executive Officer of
Neurotech. ''The extensive experience and significant investment in cell encapsulation with ECT from CytoTherapeutics
coupled with Neurotech's existing cell line technology and expertise in neurology/ophthalmology should provide a remarkable
synergy. This acquisition also establishes a U.S. presence for Neurotech, a key step in our overall strategy of growth.''
In an additional development, CytoTherapeutics and the Advanced Technology Program of the National Institute of Standards
and Technology have agreed to terminate by mutual consent two grants previously awarded to the Company for ECT and stem
cell related research. The ECT grant has been obviated by the sale of the technology. CytoTherapeutics intends to resubmit a
proposal consistent with the new directions the company is taking in its stem cell programs.
CytoTherapeutics is a biotechnology company focused on the discovery, development and commercialization of stem
cell-based therapies.
Statements in this press release other than statements of historical facts constitute forward looking statements regarding among
other things, the Company's future business operations. The Company's actual results may vary materially from those
contemplated in the forward looking statements due to risks and uncertainties to which the Company is subject including
uncertainties regarding the future development of ECT by Neurotech and the resulting uncertainty regarding the receipt of future
revenues from Neurotech, the uncertainty of future grant awards, the Company's ability to successfully dispose of its pilot
manufacturing plant in Rhode Island and to sublease its former corporate headquarters and ECT research facility in Rhode
Island, and others that are described in Exhibit 99 to the Company's Annual Report on Form 10-K entitled ''Cautionary
Factors Relevant to Forward Looking Statements.''
Contact:
CytoTherapeutics, Inc:
Richard M. Rose, M.D.
President and CEO
525 Del Rey Ave. Suite C
Sunnyvale, CA 94086
408.731.8670
Media Contact for CytoTherapeutics, Inc:
Laura Hansen, Ph.D.
IR PR Strategies, LLC
858.860.0266
Neurotech S.A.:
Dr. Tom Shepherd
President and CEO
4, rue Pierre Fontaine
Evry 91000
France
Email: t.shepherd@neurotech.fr
Tel: +33 1 60 87 89 11
Fax: +33 1 60 87 89 50 |
