Advanced Tissue Sciences Announces Plans to Realign the Organization to Address New Initiatives.Business Editors and Health/Medical Writers BIOWIRE2K LA JOLLA La Jolla (lə hoi`yə), on the Pacific Ocean, S Calif., an uninc. district within the confines of San Diego; founded 1869. The beautiful ocean beaches, in particular La Jolla shores and Black's Beach, and sea-washed caves attract visitors and , Calif.--(BW HealthWire)--March 22, 2002 Advanced Tissue Sciences, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ATIS ATIS - A Tools Integration Standard ) today announced plans to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. the organization to address new opportunities. Arthur J. Benvenuto, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Advanced Tissue Sciences, announced that the company's board of directors has approved a plan to establish separate business units that will focus on new commercial opportunities for the company's core technology. "Wound care products are and will continue to be very important to the company's future success. However, our vision for the future is clearly broader. The creation of the business units and the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. , we believe, will provide the additional energy and momentum to transform an important technology into a series of commercial successes," said Benvenuto. New Subsidiary As a first step in this effort, the company has formed BioNuvia Inc., a science-driven subsidiary. Its mission is to develop and market bioengineered products for the aesthetics and other markets for enhancing appearance and rejuvenating the body. This move is intended to maximize near-term revenue potential of these markets while positioning BioNuvia to explore additional aesthetic and rejuvenative applications of products derived from the company's core technology. BioNuvia will leverage Advanced Tissue Sciences' investment in core technology and scientific expertise with the current products including NouriCel(TM), NouriCel-MD, and human-based collagen for aesthetic applications. Kerry Vail Vail (vāl), town (1990 pop. 3,569), Eagle co., W central Colo., on Gore Creek, in the Gore Range of the Rocky Mts.; founded as a ski resort 1962, inc. as a town 1966. , a current company executive, will serve as vice president and general manager of BioNuvia. "BioNuvia brings commercial focus to this potentially high-profit area," said Benvenuto. "As a separate subsidiary, we believe it will be nimbler and faster to market with new products." In addition to BioNuvia, the company is exploring opportunities to create other subsidiaries. It is anticipated that new major initiatives will be structured in such a way as to ensure focus and flexibility in addressing markets and, where possible, be supported by the company's core research, manufacturing and administrative services. The company's strategy is based on three key principles. The first is to focus development and manufacturing efforts on commercializing short- and medium-term, fibroblast-based products. The second is to market, distribute and sell products through strategic partners or directly where the opportunity is compelling. The third is to create new strategic alliances and initiatives to unlock longer-term product opportunities. "This new subsidiary is part of the continuing implementation of our corporate strategy," Benvenuto said. "As the year progresses, we hope to announce additional initiatives and alliances as we work to realize our commitment to bring this company to profitability." Management Realignment The company has also realigned the management team to respond to these new initiatives. Dr. Gail K. Naughton, at her request, is changing her role in the company. She has been elected vice chairman of the board and will give up her duties as president. In her new role, she will focus on new applications for the company's technology as well as play an integral part in all technical and business aspects of the company's strategy, including continuing to serve as a key public representative of the company and advocate for the company's technology. Widely recognized for her scientific leadership in the field of tissue engineering and regenerative re·gen·er·a·tive adj. 1. Of, relating to, or marked by regeneration. 2. Tending to regenerate. re·gen medicine, she will also concentrate her efforts at a higher level on initiatives that drive the company's scientific vision. Dr. Naughton also will continue to serve on the boards of directors of both the Dermagraft(R) and the NeoCyte(TM) joint ventures with Smith & Nephew. Mark Gergen, vice president and general counsel, has been named senior vice president, chief financial and development officer. In his new role, Gergen will maintain business development responsibility and take on responsibility for finance and investor relations Investor relations The process by which the corporation communicates with its investors. . He will succeed Nikhil Mehta, currently senior vice president and chief financial officer, who has resigned to pursue other career opportunities. "We are grateful for Nikhil's dedication and contribution to the company, and we wish him well in his future endeavors," said Benvenuto. Joe Kletzel, executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , will take on additional direct responsibilities that previously reported to Dr. Naughton. Kletzel will continue to focus on achieving excellence in the execution of the company's business plan. Art Benvenuto will assume the additional title of president and all senior management changes will be effective March 31, 2002. Benvenuto said that during the past several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company has strengthened the management team at all levels of the organization. "This has set the stage for us to aggressively pursue new programs as well as strengthen the overall operations and implementation of our annual and strategic plans." Background Information Advanced Tissue Sciences is redefining tissue repair and transplantation with human-based products developed and derived from its patented tissue-engineering technology. The company's efforts are concentrated in four therapeutic areas: wound care; aesthetic and reconstructive; cardiovascular; and orthopedic. Three products are currently on the market: TransCyte, a temporary covering for second- and third-degree burns third-degree burns npl → brûlures fpl au troisième degré third-degree burns third npl → Verbrennungen pl dritten Grades ; Dermagraft, for the treatment of diabetic foot diabetic foot A foot with a constellation of pathologic changes affecting the lower extremity in diabetics, often leading to amputation and/or death due to complications; the common initial lesion leading to amputation is a nonhealing skin ulcer, induced by ulcers; and NouriCel for skincare and other aesthetic applications. A strategic partner, Inamed Corp., is pursuing approval of the company's tissue-engineered, human-based collagen for wrinkle Wrinkle A feature of a new product or security intended to entice a buyer. injections. Other products are in clinical or preclinical trials Noun 1. preclinical trial - a laboratory test of a new drug or a new invasive medical device on animal subjects; conducted to gather evidence justifying a clinical trial preclinical phase, preclinical test . The company has developed strategic alliances designed to unlock longer term product opportunities. These include two joint ventures with Smith & Nephew, a strategic alliance with Inamed and a collaboration with Medtronic. More information on Advanced Tissue Sciences is available at www.advancedtissue.com. Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. No assurances can be given, for example, that the proposed realignment of the company will strengthen its pursuit of its business strategy, or that the company will retain key members of management, develop its current products, or any new products it may pursue, complete clinical trials, or be able to manufacture or successfully commercialize such products. Risks and uncertainties exist in the company's operations, including, without limitation, uncertainties related to clinical trials, the ability to obtain the appropriate regulatory approvals, the ability to obtain additional milestones and financing to continue operations when needed, a history of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and accumulated deficits, the company's reliance on collaborative relationships, market acceptance of products, the company's ability to obtain and retain patent protection, as well as other risks detailed from time to time in publicly available filings with the Securities and Exchange Commission including, without limitation, Advanced Tissue Sciences' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000 and the company's quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, June 30 and September 30, 2001. The company undertakes no obligation to release publicly the results of any revision to these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. to reflect events or circumstances arising after the date hereof. |
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