Also ANIC on takeover rumors;
ATIS on great news the last few days. Here's the latest:
LA JOLLA, Calif., and SANTA BARBARA, Calif., May 12 /PRNewswire/ -- Advanced Tissue
Sciences, Inc. (Nasdaq: ATIS - news) and INAMED Corporation (OTC Bulletin Board: IMDC - news) announced today that they have entered into a strategic alliance for the development and marketing of several of Advanced Tissue Sciences' human-based, tissue-engineered products for aesthetic and certain reconstructive applications. Specifically, INAMED licensed rights to further
develop, manufacture and sell certain tissue-engineered products for use in cosmetic surgery, cartilage for plastic and reconstructive surgery, and extracellular matrix for use in breast
reconstruction. In addition, INAMED also received an option to license rights to use extracellular
matrix, including human collagen, from Advanced Tissue Sciences' three-dimensional culture system
for soft tissue augmentation (wrinkle and cosmetic correction) and as a bulking agent for the
treatment of urinary incontinence. If the option is exercised, Advanced Tissue Sciences could receive
up to $20 million in up-front and milestone payments and from the sale of Advanced Tissue
Sciences' common stock to INAMED at a premium to market, plus royalties.
''This strategic alliance for aesthetic and reconstructive applications represents an excellent
opportunity to leverage our existing competencies and is consistent with our strategy to advance our
core technology into additional product indications,'' said Arthur J. Benvenuto, Chairman and Chief
Executive Officer of Advanced Tissue Sciences. ''Investments from strategic alliances, such as that
being made by INAMED, are also an important element of the Company's financing plans for
1999.''
''Entry into the field of tissue engineering is another step in INAMED's evolution as a leader in
manufacturing and marketing medical devices for aesthetic and certain reconstructive applications,''
stated Richard G. Babbitt, Chairman and Chief Executive Officer of INAMED Corporation. ''We
are excited to have the opportunity to quickly bring tissue engineering technology into cosmetic
plastic surgery and aesthetic medicine. This alliance gives us the ability to bring a new line of
products to our existing customers and could lead to the development of several additional markets
for INAMED U.S. Plastic and Reconstructive Surgery Business Unit, McGhan Medical
Corporation and INAMED International Corp., our international business unit.''
Under the agreement between the parties, in exchange for worldwide licensing rights INAMED has
agreed to pay Advanced Tissue Sciences a series of payments totaling $6 million, including $3
million to purchase Advanced Tissue Sciences' common stock at $6 per share, or the current trading
price of the common stock plus $3 per share, whichever is higher. The licensing payments and the
stock purchases will be made over the next six months. INAMED will also receive five-year
warrants to purchase up to 300,000 shares of Advanced Tissue Sciences' common stock at a
premium to the current trading price. In addition to royalties on product sales, Advanced Tissue
Sciences may potentially receive up to a total of $6 million in milestone payments based on product
approvals in the United States.
If the option for the additional two indications is exercised, Advanced Tissue Sciences will also
receive another $4 million, including $2 million for licensing rights and INAMED will purchase $2
million of Advanced Tissue Sciences' common stock. INAMED will also be entitled to receive
additional warrants. Advanced Tissue Sciences may potentially receive up to a total of $4 million in
milestone payments based on product approvals of these additional indications in the United States.
Advanced Tissue Sciences will be responsible for the development of the products and the related
manufacturing processes while INAMED will be responsible for clinical and regulatory activities.
Advanced Tissue Sciences will have the right to manufacture the products developed under the
agreement. INAMED has agreed to hold any investment in Advanced Tissue Sciences' common
stock until at least October 2002.
Advanced Tissue Sciences is a tissue engineering company utilizing its proprietary core technology to
develop and manufacture human-based tissue products for tissue repair and transplantation. The
Company has two Joint Ventures with Smith & Nephew. The first covers the application of
Advanced Tissue Sciences' tissue engineering technology to all wound indications. These include
Dermagraft® for the treatment of diabetic foot ulcers, TransCyte(TM) temporary covering for
third-degree (full-thickness) and second-degree (partial-thickness) burns and future developments
applied to venous ulcers, pressure sores, burns and other non-aesthetic wound care treatments. The
second joint venture is developing tissue-engineered orthopedic products, initially focusing on the
repair of cartilage in knee joints.
INAMED Corporation is a global surgical and medical device company engaged in the
development, manufacturing and marketing of medical devices for plastic and reconstructive,
bariatric and general surgery markets. The Company has the largest direct sales force and distributor
network in the plastic and reconstructive fields.
The discussion contained in this press release relating to research, development, or
commercialization of products involves certain risks and uncertainties. There can be no assurance
that the strategic alliance will be successful or that the products will be successfully developed or, if
developed, that there will be a market for such products, or that they will be successfully
commercialized. Further, no assurances can be given that Advanced Tissue Sciences will receive any
milestone payments or royalties, or that any additional licensing option or warrants will be exercised
under the INAMED strategic alliance, that Advanced Tissue Sciences will successfully enter into any
further strategic alliances, or that any additional funds will be available under this or any other existing
or future arrangements when such funds are needed or, if available, on terms acceptable to
Advanced Tissue Sciences. These and other risks are detailed in publicly available filings with the
Securities and Exchange Commission such as Advanced Tissue Sciences' Annual Report on Form
10-K for the year ended December 31, 1998. Actual results may differ materially from those
currently anticipated as a result of such risks.
SOURCE: Advanced Tissue Sciences, Inc.
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