V1: Did you see that Genzyme Tissue Repair is selling their NeuroCell program to big Genzyme: by 3rd quarter, upfront payment, possible milestone payments, royalties. No specific numbers mentioned, but don't you think this has got to help? Question is, how much. From the press release:
"Consistent with the strategy to focus its business on biological products in orthopedics and burn care, Genzyme Tissue Repair has made significant progress in seeking alternative financing for its programs that fall outside its areas of focus.
By the third quarter of 1999, Genzyme Tissue Repair plans to transfer to Genzyme General (Nasdaq: GENZ - news) the rights to its NeuroCell(TM) joint venture, a program to develop cell therapies for the treatment of Parkinson's and Huntington's diseases. The NeuroCell program is being pursued in a joint venture that Genzyme Tissue Repair and Diacrin formed in 1996.
Genzyme Tissue Repair and Diacrin are conducting a phase II clinical trial of NeuroCell for Parkinson's disease. In April 1998, the companies presented interim data from a phase I clinical trial that showed that all patients tolerated the treatment well and some showed significant improvement.
Genzyme Tissue Repair's decision to transfer the joint venture rights is consistent with its orthopedics and burn care strategy. Genzyme General believes that NeuroCell has shown early promise and is an excellent fit with its primary focus on therapeutics.
''The transfer of the NeuroCell program rights allows us to cut our burn rate and carry out our strategy,'' said Tim Surgenor, president, Genzyme Tissue Repair. ''Additionally, the transfer will insure adequate funding for NeuroCell as the program goes forward and will allow Genzyme Tissue Repair shareholders to realize a return on our investment in the program. We expect that the transaction is likely to include an up-front fee, possible milestone payments, and royalties.''
Additionally, Genzyme Tissue Repair is exploring partnering alternatives for TGF- beta 2, its therapy for chronic skin ulcers. Genzyme Tissue Repair is analyzing the data obtained from its phase II clinical trial using TGF-beta 2 in a collagen sponge to treat these ulcers and plans to present this data at a scientific meeting in 1999. Based on that data, the company is in discussions with interested parties regarding partnerships for the program."
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