CytoTherapeutics Sells Encapsulated Cell Technology to Neurotech
CytoTherapeutics will receive an initial payment of $3 million, royalties on future product sales, and a portion of certain Neurotech revenues from third parties. In return, Neurotech gains possession of intellectual property assets relating to ECT. However, CytoTherapeutics retains certain non-exclusive rights to use ECT in combination with its proprietary stem cell technology, and in the field of vaccines for prevention and treatment of infectious diseases.
The sale is part of CytoTherapeutics' plan to restructure its operations to focus on the development of its stem cell technologies. The company has already relocated its headquarters from Rhode Island, where the ECT activity was previously based, to the Sunnyvale location of its wholly owned subsidiary StemCells Inc. CytoTherapeutics plans to dispose of its pilot manufacturing plant and its former corporate headquarters and ECT research facility in Rhode Island as part of the restructuring.
In related news, CytoTherapeutics and the Advanced Technology Program of the National Institute of Standards and Technology have agreed to terminate two grants previously awarded to the CytoTherapeutics for ECT and stem cell related research. The ECT grant was obviated by the sale of the technology. The funding agency has invited CytoTherapeutics to resubmit a proposal consistent with the new directions the company is taking in its stem cell programs.
Neurotech S.A. is a privately held company engaged in the pre-clinical and clinical development of cell-based therapies in the central nervous system and the eye.
CytoTherapeutics is a biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies.
For more information: Richard M. Rose, President and CEO, CytoTherapeutics Inc., 525 Del Ray Ave., Ste. C, Sunnyvale, CA 94086. Tel: 408-731-8670. Fax: 408-731-8684.