CytoTherapeutics Inc. (CTI) and Neocrin Co. have completed their agreement to transfersubstantially all the assets of CytoTherapeutics' diabetes program to Neocrin (see BioWorld,Sept 10). The two companies announced completion of the deal last week.
Both CTI (NASDAQ:CTII) and Neocrin have been developing biocompatible, implantabledevices for delivering insulin to patients with type I diabetes. Privately held Neocrin ofIrvine, Calif., is developing a bio-artificial pancreas that contains purified clusters ofporcine pancreatic islet cells that can secrete insulin and other hormones. CTI ofProvidence, R.I., had been using human pancreatic islets encapsulated in polymermembranes.
CytoTherapeutics is merging its program into Neocrin's in exchange for preferred stockrepresenting a 10 percent equity interest in Neocrin. CTI's proprietary membranetechnology was not included in the agreement.
CTI also has granted Neocrin an exclusive one-year option to acquire itsinsulin-secreting beta cell line technology, which CTI said is being designed as areproducible, self-regenerating alternative to the porcine islet technology.