LA JOLLA, Calif., and SANTA BARBARA, Calif., May 12 /PRNewswire/ --
Advanced Tissue Sciences, Inc. (Nasdaq: ATIS) and INAMED Corporation
(OTC Bulletin Board: IMDC) 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(R) 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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Company News On-Call:
http://www.prnewswire.com/comp/532975.html or fax,
800-758-5804, ext. 532975
CONTACT:
Cheryl B. Monblatt, Director, Corporate
Communications and Investor Relations of Advanced Tissue
Sciences, Inc., 619-713-7802; or Jeff Barber, Executive Vice
President of INAMED Corporation, 805-692-5400
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