ProCyte Corp. announced Wednesday that it has formed astrategic alliance with Kissei Pharmaceutical Co. Ltd. of Japan todevelop and market in Asia ProCyte's topical wound-healingagent Iamin gel.
ProCyte has granted Kissei an exclusive license for Iamin forwound-healing applications, including treating dermal wounds(diabetic, decubitus and venous stasis ulcers), surgical woundsand burns.
In return, Kissei has taken an equity position in ProCyte ofKirkland, Wash.; for an investment of $4 million, Kissei nowowns about 2.5 percent of ProCyte (based on the number ofshares of common stock outstanding as of Sept. 30, about 9.8million).
ProCyte also announced Wednesday that it intends to file for afollow-on offering of 2.5 million shares of common stock thismonth.
Kissei is now responsible for clinical testing and registration ofIamin in Japan and certain other Asian countries. ProCyte willsupply preclinical and clinical trial quantities of the drug. Bothcompanies will conduct research and development. Kissei willalso pay the R&D costs, milestone payments and royalties onsales of resulting products in the Asian market.
ProCyte's Iamin, which is a tripeptide complexed with copper,is currently in Phase III clinical studies in the U.S. for treatingdiabetic neuropathic plantar ulcers. It is believed that Iaminacts by stimulating the formation of collagen fibers in woundsites as well as activating essential inflammatory cells in thewound area.
Data from the multicenter, placebo-controlled Phase II trial onIamin for treating diabetic plantar ulcers were presented inApril at the Keystone Symposium on Wound Repair inBreckenridge, Colo., and again in June at the annual meeting ofthe American Diabetes Association in Las Vegas. According tothe clinical investigators, those trials showed that Iaminsignificantly increased the rate of wound closure in such ulcers,as well as decreased the wound infection rate.
ProCyte reported cash and cash equivalents of about $22.3million for the quarter ended Sept. 30. The stock(NASDAQ:PRCY) lost $1.25 a share on Wednesday, closing at$15.13.
-- Jennifer Van Brunt Senior Editor
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