LA JOLLA, Calif., Jan. 5 /PRNewswire/ -- Advanced Tissue Sciences, Inc.
(Nasdaq: ATIS) yesterday received $15 million from its joint venture partner,
Smith & Nephew plc, as part of a January 1998 agreement to expand the
companies' Dermagraft Joint Venture. The joint venture was originally formed
in April 1996 for the worldwide commercialization of Dermagraft(R) for the
treatment of diabetic foot ulcers. In January 1998, the joint venture was
expanded to include venous ulcers, pressure sores, burns and other wounds, as
well as the marketing of TransCyte(TM) (formerly Dermagraft-TC(R)) outside the
United States.
The joint venture was further expanded in August 1998 to include the
marketing of TransCyte for full and partial-thickness burns in the United
States, effective October 1998. Under the joint venture agreement, Advanced
Tissue Sciences has principal responsibility for manufacturing and Smith &
Nephew has primary responsibility for the worldwide sales and marketing of the
joint venture's products.
In addition to the $15 million payment, Smith & Nephew acquired $20
million of Advanced Tissue Sciences' common stock in January 1998 upon
entering into the agreement to expand the joint venture. Further milestone
payments to the Company under the expanded agreement could potentially total
up to $136 million subject to the achievement of certain regulatory and sales
milestones related to Dermagraft and TransCyte.
Advanced Tissue Sciences is a tissue-engineering company utilizing its
proprietary core technology to develop and manufacture human tissue products
for tissue repair and transplantation. The company currently has two products
on the market, TransCyte, the first human, fibroblast-derived temporary skin
substitute for full and partial-thickness burns in the United States, and
Dermagraft, a living permanent dermal replacement for the treatment of
diabetic foot ulcers (currently available in Canada and the United Kingdom).
In addition to TransCyte and Dermagraft, the Company is also developing
products for cartilage and cardiovascular applications.
Smith & Nephew plc, a leading worldwide healthcare company with more than
$1.7 billion in annual sales, has a highly successful track record in
developing, manufacturing and marketing a wide variety of innovative and
technologically advanced tissue repair products, primarily in the areas of
bone, joints, skin and other soft tissue. Smith & Nephew has extensive
marketing and distribution capabilities and sales in more than ninety
countries.
The matters discussed in this press release relating to commercialization
of the products and the achievement of milestones involve risks and
uncertainties. No assurances can be given that the Company will successfully
scale up manufacturing processes, launch its products within reasonable
timeframes, obtain reimbursement for, or successfully commercialize any such
products, or receive any further milestone payments under its joint venture
agreements with Smith & Nephew. Additionally, there can be no assurance that
the Company's joint venture with Smith & Nephew will be successful in
marketing and selling TransCyte or Dermagraft or any other products. These
and other risks are detailed in the Company's publicly available filings with
the Securities and Exchange Commission, including the Company's Annual Report
on Form 10-K for the year ended December 31, 1997. Actual results may differ
materially from those currently anticipated as a result of such risks.
SOURCE Advanced Tissue Sciences, Inc.
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800-758-5804, ext. 532975
CONTACT:
Jack D. Strube, Executive Director, Finance,
of Advanced Tissue Sciences, Inc., 619-450-5802
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