LA JOLLA, Calif., Aug. 6 /PRNewswire/ -- Advanced Tissue Sciences Inc.
(Nasdaq: ATIS) announced the expansion of its Dermagraft joint venture with
Smith & Nephew Inc. to include Dermagraft-TC(R) for burns in the United States
effective October 1998. The joint venture currently has the right to market
Dermagraft-TC for all wound care applications outside the United States and
for all wound applications except burns in the United States. As agreed,
Smith & Nephew's Wound Management Division will market and sell Dermagraft-TC
for full and partial-thickness burns in the United States. Smith & Nephew's
Wound Management Division has over a hundred sales and education specialists
addressing the wound care market.
"We believe that the increased coverage of Smith & Nephew's sales force
will allow us to more effectively penetrate the market for Dermagraft-TC in a
cost efficient manner," said Gail K. Naughton, Ph.D., President and Chief
Operating Officer of Advanced Tissue Sciences. "With Smith & Nephew's recent
acquisition of ExuDry(R), an advanced dressing used in the treatment of burn
wounds, Dermagraft-TC is clearly an excellent strategic fit for the Smith &
Nephew sales organization here in the United States, as well as in
international markets."
Dermagraft-TC will be renamed TransCyte(TM), which is descriptive of the
product's ability to allow the migration of keratinocytes (the primary cells
forming the upper layer of skin) in partial-thickness wounds. The name change
will also differentiate TransCyte from Dermagraft(R), a living, bioengineered
dermal replacement, as the Company introduces these products into new markets.
The name change will be made to coincide with the transfer of the product to
the joint venture.
Jack Blair, Group President, Smith & Nephew Inc. said, "This is an
excellent opportunity for our wound care sales organization in the United
States. TransCyte reinforces our commitment to the burn community following
our acquisition of the ExuDry product line and it allows Smith & Nephew to
begin addressing the advantages of tissue engineering in the treatment of
severe wounds. TransCyte fits well into our strategy of offering a full range
of advanced wound care technologies linked to our extensive training and
medical education programs, and to provide a total approach to wound care."
Advanced Tissue Sciences and Smith & Nephew are pursuing the worldwide
commercialization of Dermagraft for diabetic foot ulcers through a joint
venture formed in April 1996. The joint venture was expanded in January 1998
to include the worldwide development and marketing of Dermagraft and
Dermagraft-TC, and future product developments, for venous and pressure
ulcers, burns and other skin wounds. 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.
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, Dermagraft-TC, a temporary covering for full and
partial-thickness burns, and Dermagraft, a living permanent dermal replacement
for the treatment of diabetic foot ulcers (currently available in Canada and
the United Kingdom) through a joint venture with Smith & Nephew. In addition
to Dermagraft and Dermagraft-TC, the Company is also developing products for
cartilage and cardiovascular applications.
Smith & Nephew, 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 90 countries.
The matters discussed in this press release involve risks and
uncertainties. No assurances can be given that the Company's joint venture
with Smith & Nephew will be successful in marketing and selling TransCyte 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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CONTACT:
Jack D. Strube, Executive Director, Finance
of Advanced Tissue Sciences Inc., 619-450-5802
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