CytoTherapeutics Inc. and Membrana, the business unit ofGerman company Akzo Faser AG, have formed a partnershipfor the development and manufacture of second-generationmembranes for CytoTherapeutics products.

Under the agreement, CytoTherapeutics (NASDAQ:CTII) willacquire exclusive access to all Membrana's existing and novelmembranes for cell and gene therapy. Membrana is the largestmanufacturer of membranes for biomedical applications in theworld. The companies will share the cost of jointly developingnew membranes; Membrana will manufacture them and supplythem to CytoTherapeutics.

The financial terms of the deal were not disclosed.

CytoTherapeutics of Providence, R.I., encapsulates cells insemipermeable membranes for implantation in the body. Themembranes allow small and midsize molecules to pass through,but prohibit large molecules from entering the body and alsoshield the cells from the immune system.

CytoTherapeutics has two products in clinicals. Its CereCRIBimplant for severe chronic pain entered a clinical trial inSwitzerland in June in terminal cancer patients. The implantcontains bovine adrenal chromaffin, which releasescatecholamines and metenkaphalins after implantation into thefluid space in the spinal column. And the EndoCRIB implant fordiabetes, which delivers insulin-secreting pancreatic islet cellsisolated from human cadavers, entered a Phase I trial inAugust at the Washington University School of Medicine in StLouis. That implant is being transferred to Neocrin Co. under anagreement announced in September to merge the diabetesprograms of the two companies.

CytoTherapeutics' NeuroCRIB implant for Parkinson's disease,which contains dopamine-producing immortalized mammaliancells, is currently being studied in large animals. The companyis also studying the CRIB (cellular replacement byimmunoisolatory biocapsule) technology for Alzheimer'sdisease, amyotrophic lateral sclerosis and multiple sclerosis,and other neurodegenerative diseases.

-- Brenda Sandburg News Editor

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