CytoTherapeutics Inc. filed on Friday for an initial public offering of2.25 million shares of common stock with a proposed price of $12 to$14 per share.

The company is developing therapeutics in which cells or tissue areencapsulated within semi-permeable polymer membranes. Thecellular replacement by immunoisolatory biocapsule technology(CRIB) is designed to protect the cells from the host's immunesystem and the host from having to mount an immune response.

The company's lead product, NeuroCRIB, is expected to enter clinicaltrials to treat Parkinson's disease within 12 to 18 months. A secondproduct, EndoCRIB, is being developed to treat Type I diabetes.

CytoTherapeutics in January signed an agreement with TSI Corp.(NASDAQ:TSIN) to jointly market a preclinical testing system tospeed the evaluation of biopharmaceuticals in animal models. Thecompanies began marketing the CRIB-based system this month.

CytoTherapeutics raised $15.4 million in a private placement inDecember. Genentech Inc. (NYSE:GNE), which participated in theround, owns about a 3 percent equity interest prior to the IPO.

If the offering is completed, the Providence, R.I., company will have7.8 million shares outstanding. Underwriters Robertson, Stephens &Co. and Oppenheimer & Co. Inc. have a 337,500-share overallotmentoption. -- KB

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