Friday October 16, 6:00 am Eastern Time
Company Press Release
SOURCE: Creative BioMolecules Inc.
Creative BioMolecules Sells OP-1
Manufacturing to Stryker
Creative to Receive Increased Royalties and Approximately $20 Million
HOPKINTON, Mass., Oct. 16 /PRNewswire/ -- Creative BioMolecules Inc. (Nasdaq: CBMI -
news) announced today the sale of its OP-1 manufacturing rights and facilities to Stryker
Corporation (NYSE: SYK - news), the Company's partner in orthopaedic and dental
reconstruction. The transaction preserves the Company's future income stream from OP-1 based
orthopaedic and dental reconstruction products by providing Creative with increased royalties in lieu
of the manufacturing profits anticipated under the prior agreement. The sale also significantly
enhances Creative BioMolecules' near term cash flow through the expected receipt of approximately
$20 million for the manufacturing assets and the elimination of manufacturing-related expenses and
capital investments. After this transaction, Creative BioMolecules will have approximately $55
million in cash. This transaction, which is the culmination of discussions Creative BioMolecules
initiated with Stryker earlier this year, is expected to close later this year.
After the transaction, Creative BioMolecules will focus internal research efforts on developing new
tissue regeneration therapies in non-bone applications. The Company is a leader in the understanding
of tissue formation and repair through the activity of morphogenic proteins. This technology has
demonstrated clinical success in the bone-repair applications developed with Stryker, and has
shown preclinical efficacy in several soft tissue applications, including injury or disease of the central
nervous system, kidneys and other major organs. The Company will maintain pilot scale
manufacturing and related development capabilities to support its future products.
''Following the transaction, Creative BioMolecules will have a strong cash position, near term
royalty revenues, and a pipeline of therapies based upon a proven technology,'' commented Michael
M. Tarnow, President and CEO of Creative BioMolecules. ''We are excited about Creative's
future.''
Stryker began a modular PMA submission to the FDA in April of this year based on data from the
122 patient randomized prospective study that demonstrated that the OP-1 device group had
comparable clinical success to the autograft group in healing non-union fractures of the tibia without
the need for a second invasive procedure to harvest autograft bone from the hip. Data from several
pilot studies recently presented at a scientific conference in Europe have indicated the potential utility
of the OP-1 device in a broad array of orthopaedic applications.
This news release includes forward-looking statements that involve risks and uncertainties. Factors
which could cause actual results to differ from the Company's expectations include, without
limitation, completion of this transaction, progress with regulatory submissions and reviews,
manufacturing process development, validation and inspection, the timely receipt of regulatory
clearances required for manufacturing and marketing of products and the other risks and
uncertainties detailed from time to time in the Company's periodic reports.
Creative BioMolecules, Inc. is a discovery and development company focused on proprietary
therapeutics for human tissue regeneration and restoration.
NOTE: Creative BioMolecules, Inc. makes available its latest news releases on the Internet at
creativebio.com and at prnewswire.com or by facsimile by calling Fax On
Demand at 1-800-758-5804, extension 212213.
SOURCE: Creative BioMolecules Inc. |
