Printer Friendly


 CAMBRIDGE, Mass., Sept. 22 /PRNewswire/ -- T Cell Sciences, Inc., (NASDAQ: TCEL), announced today that it has acquired the outstanding minority interest in its subsidiary, T Cell Diagnostics, Inc., in order to fully capture the value of the subsidiary's emerging product line for T Cell Sciences' shareholders. T Cell Sciences now owns 100 percent of the equity in T Cell Diagnostics. The minority investors will be issued 660,000 new shares of T Cell Sciences' common stock as payment for the 16 percent of T Cell Diagnostics they have owned since 1991.
 "We initiated this move to make T Cell Diagnostics a wholly-owned subsidiary for three strategic reasons," said Alan W. Tuck, president and chief executive officer of T Cell Sciences. "First, it enables us to capture fully the value of the emerging product line of T Cell Diagnostics for the parent company's shareholders. Second, it permits us to apply the potential financial success of T Cell Diagnostics as a resource for the development of our therapeutic products portfolio. Third, it facilitates the operations of T Cell Diagnostics so that it can operate effectively with reduced administrative costs." Tuck added: "Overall, this acquisition reflects our confidence in the TRAx(TM) product line, which we believe offers one of the more exciting near-term commercial opportunities in the biotechnology industry."
 Dr. William Gelb, who has been chairman and chief executive officer of T Cell Diagnostics, will be leaving the company after helping with the transition back into a wholly-owned subsidiary. While there are no immediate plans to replace Gelb, T Cell Diagnostics will continue to be managed as a separate operating company within T Cell Sciences, reporting to Alan Tuck. To further cut costs, the staff of T Cell Diagnostics, Inc. has been reduced by 20 percent. While there will be a one-time charge of approximately $250,000 in the third quarter of 1993, the annualized savings in 1994 will exceed $1 million.
 T Cell Diagnostics has developed the TRAx product line, an ELISA based group of immunoassays which may be used to replace or supplement the currently used method of cell enumeration, flow cytometry. TRAx is a faster, simpler, less expensive, more stable, more precise, and easier to use approach than flow cytometry. TRAx products are protected by patents and patent applications which are owned by or licensed to T Cell Diagnostics. TRAx CD4 is being reviewed by the FDA as a CD4 cell enumeration test kit. The most prevalent use of CD4 cell enumeration is in the management of HIV infected patients.
 The shares issued to the minority shareholders will be registered with the Securities and Exchange Commission. The stock issuance will bring to approximately 14,166,000 the number of common shares outstanding for T Cell Sciences.
 Located in Cambridge, Mass., T Cell Sciences, Inc. is utilizing proprietary T cell and complement receptor technology to develop pharmaceutical products to treat diseases of inflammation, autoimmunity and cancer. T Cell Diagnostics, now a wholly-owned subsidiary of T Cell Sciences, develops, manufactures and markets innovative diagnostic and research products.
 -0- 9/22/93
 /CONTACT: Alan W. Tuck, president and chief executive officer of T Cell Sciences, 617-621-1400, or Susan Primrose, manager, market development & communications of T Cell Sciences, 617-621-1400/

CO: T Cell Sciences, Inc. ST: Massachusetts IN: MTC SU: FNC

DJ -- NE008 -- 4642 09/22/93 11:19 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 22, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters