To: scaram(o)uche who wrote (321 ) 1/18/2003 12:44:41 AM From: russet Respond to of 631 I'm enjoying this release,...being an old cell culture folk,... PharmaGap Patents new Method to Grow Skin Stem Cells GAP on TSX Venture OTTAWA, Jan. 16 /CNW/ - PharmaGap (GAP) has applied for a patent for a method to culture and expand mammalian undifferentiated epidermal keratinocytes exhibiting stem cell characteristics. The breakthrough comes from the new capability to grow undifferentiated (stem-cell like) epidermal cells (keratinocytes) and dermal cells (fibroblasts) with a single medium free of animal products. Starting with a small number of stem-like keratinocytes (a cell essential for skin development), large numbers of these can be grown, alone or in combination with fibroblasts. The breakthrough is three-fold. First, the undifferentiated keratinocytes population is enriched to 90%. Current commercial sources supply a maximum of 20% undifferentiated keratinocytes. Second, the two main components of skin, keratinocytes and fibroblasts, are successfully grown in the same medium. This has hitherto not been successfully accomplished. Third, GAP's method uses absolutely no animal products, greatly reducing the risk of immunotoxicity, a major concern in applications to human patients. There are numerous applications. In wound-healing, the strongly binding beta 1 integrin stem-like keratinocytes would be GAP-process selected and concentrated. These, along with fibroblasts cells, would be applied to the wound, and would begin to differentiate as they receive signals from the patient's adjacent skin cells and the micro-environment. In-vitro observations indicate the keratinocytes align themselves against the fibroblasts. This mimics the way skin grows in the body. The large numbers of undifferentiated keratinocytes should shorten healing time and increase the patient's chances for quick and complete wound epithelization. Allogeneic (out-sourced) cultured cells may initiate the process, followed by the addition of the patients' own cells (autologous cells), also prepared by GAP's method, to ensure complete wound closure. It is also expected that scaring will be greatly minimized or eliminated. The market for wound healing is largest for burns and ulcers, and GAP's technology should apply to both. In the U.S.A., 45,000 burn victims are hospitalized each year. Skin ulcer patients receive treatment for approx. 400,000 diabetic skin ulcers each year and approx. 700,000 venous and pressure ulcers (bed sores, etc.). Aesthetic and reconstructive surgery (plastic surgery) could be another large, high profit potential market for GAP's technology. With the patent now filed, collaboration discussions with wound healing and plastic surgery organizations will resume. A second area of applications is improved capabilities in the testing of drugs, pesticides, toxic gases, cosmetics and any other product topically applied that enters (or not) the body via the skin. This will be particularly of interest to European companies since animal use in cosmetic testing is scheduled to be banned by 2009. The market for dermal tests is large, but has not been quantified at this time. PharmaGap Inc. has filed a formal Patent Cooperation Treaty (PCT) application, designating all member states, on its method to growth mammalian cells. A PCT application covers approximately 100 countries, including all major countries. About PharmaGap --------------- PharmaGap is a new rational drug discovery company spun-off from the National Research Council of Canada in 1999. Our main business consists in synthesizing small proteins intended to treat major diseases. Our novel and proprietary technology base comes from our understanding of intercellular communications through Gap Junctions. Dysfunctional intercellular communication is estimated to be associated with 70 % of all neurodegenerative diseases, cancers, vascular and kidney diseases. The successful regulation of cell communication systems would represent a new platform in the treatment of all these diseases. PharmaGap's understanding of cellular communications and stem cell characteristics also provide for the invention of other biological and medical treatments and tools, such as the skin-related invention herein described. Robert Letellier, President PharmaGap Inc. The TSX Venture Exchange Inc. has neither approved nor disapproved the information herein contained. Certain information regarding PharmaGap may constitute forward-looking statements and necessarily involve industry and market risks; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. -30- For further information: R. Letellier, (613) 990-9551, robert.letellier@pharmagap.com