Curis Emerges from Three Boston Biotech Companies
Following the close of the transaction, Curis will have:
- a product which is currently under regulatory review in the United States, Europe and Australia
- multiple products in late-stage clinical development
- numerous early clinical and late-stage pre-clinical products
- a discovery engine that combines functional genomics and developmental biology across multiple medical indications.
Curis' near-term commercial opportunities will include the OP-1 Implant family of products which are being developed by Stryker Corp. (Kalamazoo, MI) for orthopaedic reconstruction. The first product has been submitted for marketing approval in the United States, Europe and Australia. Additional clinical trials are ongoing to broaden the OP-1 Implant's use in the areas of fresh fractures, spinal fusion and periodontal disease.
OP-1 stimulates the normal healing process by initiating
regeneration and growth of skeletal tissues.
Curis' lead internal products will be in the treatment of urological disorders. Chondrogel, for vesicoureteral reflux (a serious pediatric urologic disorder) is in a pivotal Phase III trial. Additional tissue engineered products are also under clinical evaluation. Curis' pre-clinical pipeline will include products that treat cardiovascular disease, stroke and skin cancer. Its discovery engine has identified product opportunities in diabetes, peripheral neuropathy, and hair growth.
Under the terms of the merger, which is subject to shareholder and regulatory approval, Creative BioMolecules' shareholders will receive three Curis shares for every ten shares of Creative BioMolecules. Following completion of the transaction, Creative BioMolecules' shareholders will hold approximately 43% of the new company, Ontogeny's shareholders will hold approximately 38% and Reprogenesis' shareholders will hold approximately 19%. Based upon the closing sales price of Creative BioMolecules on February 14, Curis would have a market capitalization of approximately $600 million. The merger is expected to close in June 2000.
"Curis will be positioned to identify and successfully commercialize therapeutic opportunities derived from the human genome program," said Doros Platika, president and chief executive officer of Ontogeny, who will serve in the same capacity for Curis. "Curis's technologies will represent a powerful system to identify target genes that may restore function through repair and regeneration. That technology platform has already identified protein, small molecule, and stem cell product opportunities. Curis is further backed by leading corporate partners and sustainable financial strength, including near-term product revenue opportunities."
The three prospective merging companies believe that combining their discovery engine with a late-stage product pipeline is the best way to build a sustainable business that will enhance shareholder value.
Regenerative Medicine
Regenerative medicine seeks to support the growth of cells and tissue to repair or regenerate tissue that is lost due to trauma or degenerative disease. Combining developmental biology with high-throughput screening capabilities and biocompatible materials enables the development of cell therapies, orthopaedic implants, protein and growth factor therapeutics, and small molecule compounds. Regenerative medicine seeks to treat the underlying cause of degenerative disease by replacing lost function.
Merging Partners
Creative BioMolecules focuses on therapies for human tissue regeneration based on morphogenic proteins, which are involved in the initiation and regulation of cellular events in the earliest stages of tissue and organ formation. Creative's first product, the OP-1 implant for orthopaedic reconstruction, is licensed to Stryker Corp. and is under regulatory review for approval in the United States, Europe and Australia. Laboratory studies suggest that OP-1 may also be useful for the regeneration of nerve cells.
Ontogeny, Inc. is a privately-held biotechnology company specializing in applying developmental biology to regenerative medicine. Ontogeny seeks to develop therapies to improve quality of life by activating the body's ability to repair and regenerate or, conversely, to control abnormal and malignant growth. The company is developing therapeutics for neurological diseases including Parkinson's and Alzheimer's diseases, diabetes, and dermatological disorders including skin cancer and hair growth.
Reprogenesis, Inc., located in Cambridge, MA, is a privately held biotechnology company which intends to be the leader in the development of tissue engineered therapies to treat unmet medical needs. The Company has proprietary technology utilizing the combination of cells and biomaterials to restore, repair or replace lost tissue or physiological function. The company has a broad preclinical and clinical pipeline of products in the areas of urology, cardiovascular biology and plastic and reconstructive surgery. Chondrogel is its most advanced product. This product is in a Phase III clinical trial and is used to treat vesicoureteral reflux, a congenital urological disorder that affects 1% of all children.
For more information: Karla MacDonald, Creative BioMolecules, Inc., 101 Huntington Ave., Suite 2400, Boston, MA 02199. Tel: 617-912-2953. Fax: 617-912-2994.
Angelo DePalma