Dozens of small companies have gone to the public markets in recent years to raise funds for research into tissue repair, replacement, and regeneration. These companies now have a total market capitalization of some $2.5 billion, according to the Rhode Island Center for Cellular Medicine. Most of them, however, will turn a profit only if their experimental treatments make it through several clinical trials and gain approval from the Food & Drug Administration, which can be a risky bet.
Witness what happened to Advanced Tissue Sciences Inc. after the FDA delayed a final decision on its lab-grown skin for diabetic foot ulcers on June 11. The stock, which had already declined from 14 to 7 this year, crashed to a low of 3 1/2 on the news. Still, the creators of those tissues that do succeed will have a good shot at tapping into the $80 billion potential market for engineered tissues.
Though not a comprehensive list, this table includes some of the companies with big plans.
RECENT 52-WEEK STOCK COMPANY HIGH LOW PRICE* ADVANCED TISSUE 18 1/2 3 1/2 4 SCIENCES (ATIS) ATRIX LABORA- 23 7/8 11 14 1/2 TORIES (ATRX) BIOMATRIX 43 1/2 20 5/8 41 7/8 (BIOX) CREATIVE BIO- 11 5/8 4 1/8 4 9/16 MOLECULES (CBMI) CYTOTHERAPEUTICS 7 5/8 1 1/16 1 7/16 (CTII) GUILFORD PHARMA- 32 3/4 16 1/2 17 1/4 CEUTICALS (GLFD) GENZYME TISSUE 12 1/2 5 6 5/8 INTEGRA 10 3/4 5 7/8 7 3/8 LIFESCIENCES (IART) LIFECELL (LIFC) 8 3/8 3 1/2 5 7/8 ORGANOGENESIS 37 51/64 10 41/64 16 1/4 (ORG) ORTEC INTER- 23 83/8 15 1/2 NATIONAL (ORTC) REGENERON PHARMA- 13 7 9 CEUTICALS (REGN) COMPANY COMMENTS ADVANCED TISSUE New trials on Dermagraft, its living- SCIENCES (ATIS) skin product, will have to be done before the FDA will allow commercial distribution. Also working on other uses for its technology, in ortho- pedics and cardiology. ATRIX LABORA- Working on systems to grow gum tissue, TORIES (ATRX) heal bone fractures, and treat soft tissues. BIOMATRIX The success of Synvisc, its treatment (BIOX) for osteoarthritis of the knee, is key to investors now. CREATIVE BIO- In trials for a bone-mending product. MOLECULES (CBMI) Also developing technology to form cartilage, kidney, tooth, and brain tissues. CYTOTHERAPEUTICS Developing therapies for disorders of (CTII) the central nervous system, such as Huntington's and Lou Gehrig's diseases. GUILFORD PHARMA- Developing products that will regenerate CEUTICALS (GLFD) nerves in Parkinson's disease and in- jured spinal cord victims GENZYME TISSUE This separately traded Genzyme division has products for skin repair and replace- ment and is developing bioengineered cartilage. INTEGRA Products induce cells to regenerate body LIFESCIENCES (IART) tissues and organs. Gained approval in March 1996 for Integra, a skin-regenera- tion product. LIFECELL (LIFC) Working on lab-grown heart valves and dental tissues. Currently markets Allo- Derm, a skin graft used in reconstructive surgery. ORGANOGENESIS Makes Apligraf, the first engineered skin (ORG) to win FDA approval for treating leg ulcers. Also working on arteries and an artificial liver. ORTEC INTER- This engineered-skin developer is working NATIONAL (ORTC) on a skin product for burns and other wounds. REGENERON PHARMA- Developing protein-based treatments for CEUTICALS (REGN) degenerative neurological diseases, muscle atrophy, and abnormal bone formation.*As of July 13
DATA: BUSINESS WEEK, BLOOMBERG FINANCIAL MARKETS, TECHVEST LLC, D&MD
Updated July 16, 1998 by bwwebmaster
Copyright 1998, Bloomberg L.P.