Artecel Sciences
fwiw...Just parking, may need to reference it in the future.
Best of Luck,
SS
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bizjournals.com
May 22, 2002
Artecel Sciences obtains patent
Durham-based Artecel Sciences has obtained from the U.S. Patent and Trademark Office an exclusive U.S. patent covering a product in the company's adult stem cell portfolio.
The newly issued patent (No. 6,391,297) covers human stem cells isolated from fat tissue that have been modified to exhibit at least one characteristic of an osteoblastic (bone) cell lineage.
The patent also covers such cells that have been genetically modified or are in combination with a matrix. These rights enhance Artecel's intellectual property position to include composition of matter in bone repair, a promising application of the company's adult stem cell technology, Artecel says.
Got a story tip on biotechnology? Contact staff writer Sabine Vollmer at svollmer@bizjournals.com
© 2002 American City Business Journals Inc.
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Fat runs out of Artecel
Sabine Vollmer
DURHAM – Artecel Sciences has laid off 14 of its 16 employees, and the remaining two executives of the biotech startup have moved into offices at Eno River Capital.
Eno River is the Durham-based venture capital firm that was the lead investor in Artecel's first and only successful fundraising round, which was $4 million.
From their new vantage point, Carolyn Underwood, chief executive officer of Artecel, and Jeff Gimble, the company's chief scientific officer, are looking for a corporate partner to either buy the intellectual property or resurrect research activities with an equity investment or cash.
The switch to survival mode was made in late June after Artecel had tried unsuccessfully for at least 10 months to raise a follow-up round. The round targeted $12 million to $15 million when it officially launched Sept. 9, 2001. But by May, the targeted amount of cash had dropped to $6 million to $10 million.
By the end of June, it had become clear that Artecel would not find a lead investor for its second round, Underwood says. "Venture capitalists just aren't investing in early-stage companies – especially not in stem cell research, which is what we're doing."
Artecel was founded in 2000 based on technology licensed from Durham-based Zen-Bio, which developed an in vitro system for studying human fat tissue.
The startup used the technology to find a new way to repair cartilage, bone and central nervous system injuries. It extracted stromal cells, which are adult stem cells, from fatty tissue and placed them into different environments to grow cartilage, bone and nerve cells.
Other investors in the first round included TriState Investment Group, an angel fund in Chapel Hill; Bio World Venture Capital in Taipei, Taiwan; and Fujisawa Investments for Entrepreneurship, the Evanston, Ill.-based investment arm of Japanese Fujisawa Pharmaceutical.
Underwood insists that Artecel isn't dead. "We're very optimistic that we can make a strategic deal before the end of the year."
Negotiations are under way with five interested parties, two of them large pharmaceutical companies and one a nonprofit organization, she says. She considers some of the talks to be late stage. She would not identify the concerns with which she is having talks.
In case the talks all fail, Artecel will mothball its technology and wait out the market, Underwood says. One of the first-round investors has agreed to continue to support the company at a subsistence level.
© 2002 American City Business Journals Inc
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Artecel assets sold
Chris Baysden
Durham-based Artecel Sciences Inc. has closed on an agreement with a newly created entity to sell substantially all of the company's assets.
Artecel Sciences' principal assets consisted of worldwide rights to a broad portfolio of intellectual property in the area of adipose-derived adult stem cells.
The newly formed company that purchased the assets is incorporated as Artecel Inc. and is affiliated with Toucan Capital Corp., a Maryland-based, early-stage venture fund, and Cognate Therapeutics Inc., a company that provides management and technical services to cell therapy companies.
Artecel Sciences, which shut down operations for lack of cash last year, laid off 14 of its 16 employees in 2002 after trying unsuccessfully for at least 10 months to raise $12 million to $15 million. By June, it became clear that a lead investor couldn't be found for a follow-up round. The company had raised $4 million after being founded in 2000.
Carolyn Underwood, president and chief executive officer of Artecel Sciences, says no decision has been made on where Artecel Inc. will be based, or if it will employ either of Artecel Sciences' two employees.
© 2003 American City Business Journals Inc. |
