CytoTherapeutics Announces Settlements With Genentech, Rhode Island Partnership for Science and Technology And Industrial Recreational Building Authority.Business Editors & Health/Medical Writers BIOWIRE2K SUNNYVALE, Calif.--(BW HealthWire)--March 16, 2000 CytoTherapeutics (Nasdaq:CTII CTII Comprehensive Technologies International, Inc. ), announced today that it has resolved its differences with Genentech and with the two Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. agencies. The Genentech claim, which amounted to $3.1 million, has been settled at no cost to CytoTherapeutics. The claim arose out of a 1996 agreement concerning the Company's former encapsulated cell technology ("ECT ECT electroconvulsive therapy. ECT abbr. electroconvulsive therapy ECT Electroconvulsive therapy sometimes is used to treat depression or mania when pharmaceutical treatment fails. "), under which Genentech had funded research through an investment in shares of CytoTherapeutics stock. Under certain circumstances, CytoTherapeutics was obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to redeem a portion of that stock. Under the settlement agreement, CytoTherapeutics is relieved of the obligation. The Rhode Island disputes involved a claim for $2.6M by the Rhode Island Partnership for Science and Technology (RIPSAT), and a claim by CytoTherapeutics against another Rhode Island agency, the Industrial Recreational Building Authority ("IRBA IRBA Internal Ratings Based Approach IRBA International Reptile Breeders Association IRBA Isle Royale Boaters Association (Houghton, MI) IRBA Illinois Road Builders Association ") for approximately $600,000. RIPSAT had asserted that the Company's move from Rhode Island to California to concentrate on its stem cell stem cell In living organisms, an undifferentiated cell that can produce other cells that eventually make up specialized tissues and organs. There are two major types of stem cells, embryonic and adult. technology put it in default under a 1989 funding agreement and demanded repayment of the original $1.2M grant plus interest. The Company claimed it was entitled to the return of a Reserve Fund of approximately $600,000 held by IRBA as security for certain bonds. Under the composite settlement, both issues were resolved with payment to RIPSAT of $560,000 and assignment to RIPSAT of the security funds held by IRBA. "We are pleased that CytoTherapeutics has come to agreements with Genentech and the Rhode Island agencies that are satisfactory to all parties," said George Dunbar, acting president 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 CytoTherapeutics, Inc. "We have been progressing steadily in our plan for restructuring the Company and focusing on our core business of stem cell technology, and eliminating these potential liabilities is a significant element of that plan." CytoTherapeutics is a biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies to treat diseases of the central nervous system, liver, and pancreas. The Company's stem cell programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion