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TiGenix to acquire Orthomimetics

16 NOVEMBER 2009

Leuven (BELGIUM) - November 16, 2009 - TiGenix strengthens its product portfolio and biomaterials platform through the acquisition of Orthomimetics, a privately held medical technology company based in Cambridge, the United Kingdom. This acquisition fits with TiGenix’ growth strategy of becoming a leading player in the promising and fast-growing field of regenerative medicine.

Orthomimetics was founded in 2005 as a spin-out from the University of Cambridge and the Massachusetts Institute of Technology (MIT). Its products are based on a leading collagen biomaterials platform for the production of scaffolds for cartilage, meniscus, ligament and tendon repair.

Orthomimetics’ flagship product, Chondromimetic™, is an off-the-shelf, resorbable implant for the minimally invasive repair of small osteochondral (cartilage and underlying bone) defects. The product has received European market approval (CE-Mark approval) and is close to entering the European market. Small osteochondral defects represent an important medical need that is currently not covered by TiGenix’ products. Chondromimetic™ forms an excellent fit with TiGenix’ lead product, ChondroCelect®, since both products target the same customer base in complementary indications.

The acquisition of Orthomimetics also broadens TiGenix biomaterials expertise. Orthomimetics’ technological advantage lies in the patent-protected ability to combine three natural biomaterials, collagen, glycosaminoglycans and calcium phosphate, into bioresorbable tissue regeneration scaffolds. The combination of Orthomimetics’ biomaterials know-how with TiGenix’ cell-based platform allows TiGenix to broaden its development focus towards regenerative medicine products for meniscus, tendon, and ligaments.

Under the terms of the acquisition, TiGenix will issue about 3.7 million new shares as consideration for the purchase of all outstanding shares of Orthomimetics. This values Orthomimetics at EUR 16 million (USD 23.8 million) on a debt and cash free basis. The new shares will be admitted to trading on the NYSE Euronext Brussels. The Orthomimetics shareholders agreed to a lock-up period until 31 October 2010 that could be lifted earlier with the prior written consent of TiGenix.

“This consolidation represents a natural extension of our core business strategy to provide the best regenerative medicine solutions to orthopaedic surgeons worldwide. The synergies between Chondromimetic™ and ChondroCelect® allow us to leverage our existing European infrastructure and commercial capabilities, and provide the opportunity to increase our near-term revenue growth with limited impact on our cash needs” comments Gil Beyen, CEO of TiGenix “The combination of these advantages and our expertise in developing cell-based therapeutic products creates a unique platform from which innovative future combination products can be developed.”

Commenting on the strategic fit between the companies, Andrew Lynn, CEO of Orthomimetics said: “The ability to equip a single sales force with two approved products that have the same point of sale is a clear and immediate commercial benefit.” Lynn, who will assume lead business-development responsibilities at TiGenix as Chief Business Officer, went on to add: “By bringing together key expertise and market-ready products based on cells, biomaterials and minimally invasive delivery systems, TiGenix has put itself in a strong position to drive the market uptake of regenerative medical treatments in orthopaedics. It is an honour for all of us at Orthomimetics to become part of this innovative and exciting effort.”

For more information, please contact:
Gil Beyen
Chief Executive Officer

Kris Motmans
Corporate Communications

T: +32 16 39 60 60

About TiGenix
Based in Leuven, Belgium, TiGenix NV (NYSE Euronext Brussels: TIG) is a biomedical company that focuses on ‘Regenerating Motion’. The company is exploiting the power of Regenerative Medicine to develop durable treatments, validated through controlled clinical trials, for damaged and osteoarthritic joints. TiGenix is developing a portfolio of products that address specific musculoskeletal problems. The lead indication among these is cartilage damage, which is a debilitating affliction affecting the mobility and functioning of patients. Western societies are characterised by ageing populations that place an increasing emphasis on high quality of life and life-long mobility, and, as such, cartilage problems represent a large and growing unmet medical need. Current therapies do not provide satisfying, long- term durable repair and TiGenix therefore believes there is a need for more effective treatments for cartilage damage.

About ChondroCelect®
ChondroCelect®, the company’s lead product for cartilage regeneration in the knee, is the first cell- based product that successfully completed the entire development track from research, over clinical development to central European registration as a medicinal product. ChondroCelect® consists of characterised cultured chondrocytes derived from the patient’s own cartilage and is used for autologous chondrocyte implantation (ACI), a surgical procedure to treat cartilage defects. Cartilage defects of the knee are very common, and the spontaneous healing capacity of cartilage is limited. On October 5, 2009 ChondroCelect® received European marketing authorisation as the first Advanced Therapy Medicinal Product, indicated for repair of single symptomatic cartilage defects of the femoral condyle of the knee (International Cartilage Repair Society [ICRS] grade III or IV) in adults.

About Orthomimetics
Orthomimetics Limited is a medical technology company that specializes in the design, development, and manufacture of regenerative medical implants and minimally invasive delivery systems for the treatment of sports injuries, trauma and other conditions that affect knees, ankles and other articular joints. Formed in 2005 as the first spin-out venture from the Cambridge-MIT Institute, the company is bringing to market a line of medical device products designed to improve the treatment outcome of first-line surgical procedures for the regenerative repair of articular cartilage, meniscus, ligament and tendon injuries using natural biomaterials. These products are engineered to be compatible with existing surgical techniques and to work in combination with emerging cell- and biologics-based products. The company is supported by blue-chip investors including Schroders Investment Management, Sloane Robinson Private Equity, Goldman Sachs and Oxford Capital Partners.

About Chondromimetic™
Chondromimetic is a porous, resorbable implant which is designed to support the regenerative repair of damaged joint surfaces and bony defects caused by trauma or disease. Chondromimetic contains three readily-absorbed, non-synthetic biomaterials: collagen, glycosaminoglycan and calcium phosphate in a dual-layer porous implant. The product allows pre-hydration with sterile fluids and autologous blood products and provides optimum environmental conditions for cell infiltration and tissue regeneration via its unique materials composition and scaffold architecture. The product is supplied sterile and ready to use, and is compatible with open and minimally invasive implantation methods. The product received CE-mark approval for the treatment of small chondral and subchondral lesions.

Publisher Contact Information:

+32 16 39 60 60

Company profile of OrthoMimetics Ltd. (acquired by Tigenix)
Past press releases of OrthoMimetics Ltd. (acquired by Tigenix) .


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