Celtrix Pharmaceuticals Inc. announced Wednesday that it hasbeen assigned a new U.S. patent on the composition of a tissue-repair protein.

The protein, IGF-BP3, binds insulin-like growth factor and maybe useful in treating osteoporosis, ophthalmic diseases, woundrepair and wasting conditions associated with chronicobstructive pulmonary disease, cancer or AIDS, said SandraMcNamara, chief financial officer of the Santa Clara, Calif.,company (NASDAQ:CTRX).

The patent is based on work begun at the BioGrowth, aprivately held company in Richmond, Calif., which merged withCeltrix in December 1991. BioGrowth isolated, cloned andexpressed the binding protein for IGF, submitted patentapplications and conducted preclinical analysis on thesubstance.

Celtrix expects its first treatment indication to be musclewasting in patients with chronic obstructive pulmonarydisease, said Bruce Pharriss, chairman and chief executiveofficer. The company is using a complex of the binding proteinand insulin-like growth factor, which it calls SomatoKine.

IGF-I is one of the family of IGF proteins that have diverseeffects in cell growth and the repair of wounds in hard and softtissue. The potential of using IGF-I alone in clinical applicationshas been explored by many researchers, McNamara said, butstudies show even minimally elevated levels of its free formcan cause hypoglycemia. Andreas Sommer, vice president ofresearch at Celtrix, said the binding protein may target IGF-Iactivity and modulate its availability in the bloodstream.Sommer was in charge of research and development atBioGrowth prior to the merger.

Celtrix's patent, No. 5,200,509, covers claims on the essentiallypurified binding protein and its naturally occurring amino acidsequence. The binding protein composition specifies molecularweight and ability to bind IGF polypeptides.

Celtrix also has patents pending on the recombinant productionand various uses of IGF-BP3, as well as uses for the bindingprotein complex with IGF. The company is developing potentialtherapies based on two other cell regulating proteins, BetaKineand a soluble TGF-beta cell receptor.

Celtrix's stock was up 25 cents a share on Wednesday, closingat $7.

-- Nancy Garcia Associate Editor

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