Celtrix Exercises Option To Receive Additional Equity Investment From Genzyme.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 4, 1995--Celtrix Pharmaceuticals, Inc. (Nasdaq: CTRX) announced today that it has exercised its option to receive an additional equity investment from Genzyme Corporation. This will increase Genzyme's total ownership position from 11.3% to a maximum of 19.9% of Celtrix's common stock. The exact amount of the investment is subject to certain pricing and other parameters, and will be determined when the transaction is completed in mid-December 1995.

"Genzyme has been a significant investor in Celtrix since June of 1994," commented Andreas Sommer, Ph.D., Celtrix's president and chief executive officer. "At that time, Genzyme purchased over 1.5 million shares of Celtrix common stock and granted Celtrix an option, which is now being exercised, for a second equity purchase currently estimated at $4.5 million," he said. "These investments are part of our 1994 product development, license and marketing agreement on TGF-beta-2."

Genzyme is a leading human health care products company. Through its agreement with Celtrix, Genzyme has worldwide commercialization rights, excluding Asia, for all systemic and select local applications of TGF-beta-2. Associated TGF-beta-2 development programs are being handled by Genzyme's Tissue Repair Division, which focuses on developing, producing and marketing technologically advanced products and services for the treatment and prevention of serious tissue damage.

Celtrix is a biopharmaceutical company focused on developing novel therapeutics for the treatment of seriously debilitating, degenerative conditions primarily associated with severe trauma, chronic diseases or aging. Company programs target the treatment of acute nutritional deficiencies and muscle wasting. Corporate partner programs extend these opportunities to include osteoporosis, tissue repair and multiple sclerosis.

CONTACT: Celtrix Pharmaceuticals, Inc.

Mary Anne Ribi, 408/988-2500