As New Applications Boost Demand for Cell Therapy Products, Market Opportunities Abound.

Business Editors

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Dec. 20, 1999

Recent research in the field of cell therapy is helping to revolutionize treatment for tissue repair and regeneration and boost demand for innovative products.

Emerging applications in skin cell therapy will help treat dermal ulcers with artificial skin, while new uses for stem cells derived from cord blood or fetal embryos are expected to produce promising results in the treatment of various diseases.

According to new strategic research from the healthcare group at Frost & Sullivan, "U.S. Cell Therapy Markets," 1999 total market revenues are expected to reach approximately $77 million, up more than 40 percent from the previous year's total. Frost & Sullivan analysts forecast this tremendous average annual growth to continue increasing through the year 2005.

By using living human cells to produce engineered tissues and organs that function like their natural counterparts, researchers are opening important new doors for cell therapy. Research and development will play a crucial role in the industry, as companies are offering new and improved features to distinguish themselves from competitors. Still, market participants will need to overcome ethical controversies that threaten to slow research.

Biotech companies developing tissue engineered products sometimes conduct clinical trials with no guarantee of product approval. This is a major obstacle for companies working towards producing one specialized product.

"The high cost of development together with a lengthy and uncertain regulatory process, has many start-ups with innovative technologies facing millions of dollars in losses for several years," say Frost & Sullivan Cell Therapy Analysts, Borun Majumdar and Viji Subramanyam. "Big pharmaceutical companies looking to enter this marketplace can provide relief to these cash strapped firms and use this technology as a launch pad."

"U.S. Cell Therapy Markets" analyzes the major segments of the U.S. cell therapy markets, including organ, cartilage, skin, neurodegenerative disease and stem cell therapies. The research discusses market drivers and restraints, pricing and technology trends, and the competitive structure of each segment, while projecting unit and revenue forecasts for the period 1995-2005.

Frost & Sullivan presents Market Engineering Leadership Awards to companies that have worked hard to make a positive contribution to the cell therapy industry in 1998.

The 1998 Market Engineering Leadership Customer Focus Award has been presented to Genzyme Tissue Repair (GTR) for its superior knowledge of customer needs and its ability to meet and exceed customer expectations. GTR is a leading developer of biological products for the treatment of orthopedic injuries such as cartilage damage and severe burns. GTR has been proactive in training surgeons in the areas of cartilage surgery and skin replacements, while working towards developing new procedures in cartilage repair to decrease rehabilitation time.

The 1998 Market Engineering Leadership Product Innovation Award given to Ortec International recognizes the company's ability to adopt new technology, develop a well-designed product family, and make significant contributions to the market in terms of product performance. Ortec International's versatile technology platform has a wide range of applications including use as artificial skin. Ortec's Composite Cultured Skin (CCS) is expected to be approved by the FDA and launched in late 1999. CCS's bi-layer structure uses a porous collagen matrix to deliver growth factors and could offer a superior means for skin regeneration and wound healing.

Ortec International has also garnered the 1998 Market Engineering Leadership Award for Entrepreneurial Company. Ortec is demonstrating that it has a very focused R&D plan for its CCS product.

The 1998 Market Engineering Leadership Marketing Strategy Award has been presented to Nexell Therapeutics. Nexell possesses a well-developed and well-integrated marketing program that is based on performance measurements, encouraging marketing efficiency. The company is the leading developer and marketer of innovative diagnostics and ex vivo cell therapies for cancer, autoimmune, metabolic, and genetic diseases. Its superior technology and indisputable patent protection coupled with an aggressive marketing strategy have helped Nexell to make significant strides in the area of autologous stem cell transplantation.

This healthcare industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included. Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the cell therapy & tissue engineering markets.

Participants in the U.S. cell therapy markets include: Aastrom Biosciences, Inc.; Acorda Therapeutics; Advanced Tissue Sciences, Inc.; Algenix, Inc.; AmCell Corporation; BioHybrid Technologies, Inc.; Cell Therapy Research Foundation; Circe Biomedical, Inc.; CryoLife, Inc.; CytoTherapeutics, Inc.; Dendreon Corporation; DePuy, Inc.; Diacrin International; Encelle, Inc.; Excorp Medical, Inc.; Genzyme Tissue Repair; Geron Corporation; Integra LifeSciences Corporation; Islet Sheet Medical, L.L.C.; Islet Technology, Inc.; Johnson & Johnson Medical; Layton Biosciences, Inc.; LifeCell Corporation; Nexell Therapeutics, Inc.; Novartis Corporation; Novocell Co.; Organogenesis, Inc.; Ortec International, Inc.; Osiris Therapeutics, Inc.; OsteoBiologics, Inc.; Ramus Medical Technologies; Reprogenesis, Inc.; Titan Pharmaceuticals; VitaGen, Inc.; VivoRx, Inc.; and Xenogenics Corporation.

Related companies include: Anika Therapeutics, Inc.; Arthrex, Inc.; Baxter International, Inc.; Biomatrix, Inc.; Biomet, Inc.; Bionx Implants, Inc.; Biosyntech, Ltd.; Biotransplant, Inc.; Cancer Therapeutics, Inc.; Cell Genesys, Inc.; Chiron Corporation; Chrysalis Biotechnology, Inc.; Epimmune, Inc.; Hemosol, Inc.; Intracel Corporation; Mylan Laboratories, Inc.; Origen Therapeutics; Orquest, Inc.; Ortec International, Inc.; Protein Polymer Technologies, Inc.; PharMingen, Inc.; ReGen Biologics, Inc.; Regeneron Pharmaceuticals, Inc.; SyStemix; and Tissue Informatics, Inc.

Key industry organizations include: Alzheimers Association National Office; American Association of Tissue Banks; American Chronic Pain Association; Cord Blood Donor Foundation; National Marrow Donor Program; and Rothman Institute.

Frost & Sullivan is an international marketing consulting and training company that monitors the healthcare industry for market trends, market measurements, and strategies. This ongoing research is included in the "Pharmaceutical Custom Subscription" through Frost & Sullivan Online, and is used to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan research are available to the press through our media relations department.

U.S. Cell Therapy Markets

Report: 5312-52 Date: January 2000 Price: $3,950