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Showing posts with label Lonza. Show all posts
Showing posts with label Lonza. Show all posts

Friday, March 27, 2009

Cell Therapy Industry HiLites 2009-03-27


Here's a big thank you shout out to the growing cadre of great readers, subscribers, and participants in the network of cell therapy colleagues I'm proud to be part of whether it is here on this blog or on our LinkedIn Cell Therapy Industry Group. We're proving cell therapy means business! Keep up the outstanding repartee.




In keeping with the biblical proposition that "nothing new is under the sun", a new physician group as been formed to "oppose FDA's position on adult stem cells". The newly formed "American Stem Cell Therapy Association (ASCTA)" this week posted its manifesto online and issued a press release saying the "organization was formed in response to the Food and Drug Administration's (FDA) recent position that the adult stem cells found in everyone's body are drugs, a position the ASCTA opposes." I'm not sure which move the FDA made recently that would make these docs think this is the FDA's recent position. As I wrote on this blog back in September last year, doctors have been trying to tell the FDA that cell therapy is the "practice of medicine" for years and it hasn't worked. Of course, it will come as no surprise to you that central to this new movement of doctors lobbying for the right to treat patients with their own stem cells however they see fit, is Dr. Chris Centeno of Regenexx and other doctors like Dr. Zannos Grekos who are involved with stem cell treatment clinics marketing to US patients for clinics performing their magic outside the USA.


In a classic case of overstating the point, ASCTA member Dr. Frank Falco states, "The FDA's position against someone using their own stem cells is taking it too far." Of course, saying that is the FDA's position, is taking his point too far but subtleties like that don't get people engaged in a revolution!

Enough of that. On to the news & analysis. It wasn't a great week for cell therapy with Osiris stopping its phase III trial for Chron's and all but that had more to do with the difficulties of designing good clinical trials than it did cell therapy.

FINANCIAL

Intercytex Group Plc (AIM: ICX) announced it is in talks which may lead to an offer for the company. In February, the company said it was reviewing options, including a possible sale or merger, after it stopped work on Cyzact, one of its main products, to preserve cash. The company's product Vavelta has reportedly now treated 120 people in a commercial setting and its ICX-SKN skin graft replacement for burns and acute wounds is fully funded by the US Armed Forces Institute of Regenerative Medicine. Inercytex reported revenues of £17,000 for the year.

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Taiwan is angling to be one of the major biotech hubs of Asia by making biotechnology the country's third major industry in the next 10 years. To that end, it has proposed a $1.76 billion dollar VC fund. The Taiwan government's National Development Fund will have a 40 percent stake in the venture, and the private sector will see to the other 60 percent. The economic development plan also calls for the establishment of a biotech incubation center that will introduce new medicines to existing biotech parks. Taiwan has a strong interest in cell therapies and the country's regulatory authority(the BFDA) is investing heavily in establishing a well-defined regulatory framework for cell, gene,and tissue based products. Unlike Singapore's investment in stem cell research, Taiwan appears to be positioning itself to support later-stage commercial entities already working on translation of research into clinical products.

CLINICAL

And here's the big news of the week. Osiris Therapeutics, Inc. (NASDAQ: OSIR) announced it was stopping its phase III clinical trial of Prochymal for the treatment of acute Crohn’s disease (CD).

The good news? It was not for safety concerns. The decision was made after the trial's final scheduled interim analysis showed that one of the two Prochymal dose arms (they don't know which because that has not yet been unblinded) in one of the two trials in the program had crossed a futility boundary (would not achieve statistical significance) according to the study's DSMB.

Osiris’ phase III CD program consisted of 2 trials, and induction trial (S-603) and a maintenance trial (S-610). The Study-603 “Induction” trial was randomized into three arms, one-high dose Prochymal (400M cells for the 1st two infusions and 200M cells for the next two) , one low-dose Prochymal (200M cells in the 1st two infusions and 100M cells in the next two) and placebo. After 28 days of dosing, patients were evaluated by a subjective evaluation for a reduction in the Crohn’s disease activity index (CDAI). Patients with a 100-point drop in CDAI score according to the self-evaluation were then eligible for re-randomization into the longer-term Study-610 “Maintenance” trial. It is this design that management now believes presented an inducement for patients to "over-report" improvements so as to be eligible to participate in the longer, subsequent trial. This is evidenced, they believe, by the fact that 56% of the participants in the in the S-603 program enrolled in the S-610 program when they would have expected the number to be more around 30 - 40%.

The other pieces of good news to salvage out of the day are (a) Genzyme supports the decision, and (b) the trial had already enrolled 210 of its expected 270 patients. Osiris is going to complete the study as if it were a 210-patient study in hopes that there is significant data from the trial that can not only be used in redesigning subsequent trials but also to bolster Prochymal’s overall safety database. Regarding Genzyme's position, this is certainly reason for them to be disappointed but this saves them milestone payouts in the short-term and they are not on the hook for the additional costs that will be incurred because of the decision so as long as they still believe in the fundamentals of the product, they have no reason to pull out of the relationship now.

Randy Mills spent some time in a webcast on Friday explaining the details of what transpired, the decision, what they theorize went wrong or was wrong with the trial, and where they anticipate going from here. He made it very clear a number of times that there is no reason to believe this will have any impact on the Prochymal trial for GvHD. One of the other things he explained was that Osiris never believed this current phase III program for Crohn's was going to be sufficient to support a BLA. They had always anticipated another phase III trial. What Randy didn't say was whether this decision would mean another one or two trials would be required.

Analyst Jason Napodano is on record stating he believes "it could be a year or so before Osiris can re-initiate the Crohn’s program, which will most likely include two separate phase III trials, one induction and one maintenance, but once initiated the program should enroll quickly given management’s experience from just halted program and the inclusion of several additional new centers that did not participate the first time." Despite the setback he believe the news presents a buying opportunity for Osiris shares which were down as much as 22% in Friday's trading.

He believes "Osiris remains financially sound and should exit 2009 with over $100 million on the books" and expects "Prochymal will be on the market in the U.S. by the end of next year for GvHD". They have a target of $25 per share.

In Friday's investor teleconference, Randy stated he expects the company will be reporting top-line data on the Prochymal trial for steroid-refractory GvHD in 3Q 2009 given that enrollment in that trial is already complete and, based on enrollment rates for the acute GvHD trial, he expects to be reporting data from that trial in the same Quarter.

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Neurotech Pharmaceuticals, Inc. announced that the Company's lead product candidate, NT-501, substantially slowed the loss of vision in a Phase 2 clinical trial in subjects with dry age-related macular degeneration involving geographic atrophy. NT-501 is an intraocular implant that consists of human cells that have been genetically modified to secrete ciliary neurotrophic factor (CNTF) which is delivered directly to the back of the eye in a controlled, continuous basis by means of the Company's proprietary Encapsulated Cell Technology platform, thereby bypassing the blood-retinal barrier. The Phase 2 study is a multi-centered, randomized, double-masked, sham-controlled study of 51 subjects with GA. Patients received either a high or low dose NT-501 implant or a sham treatment in one eye only. The high dose of NT-501 stabilized best corrected visual acuity at 12-months, with 96.3% (p=0.078) of treated-patients losing fewer than three lines of vision, or 15 letters, versus 75% of the patients in the sham-treatment group.

What I find interesting about the study is that five devices from this trial have now been explanted 12 months following implantation and all have been found to have uniformly healthy, viable cells that continue to produce therapeutic levels of CNTF. This is reportedly consistent with data from multiple trials of NT-501 in which, to date, 23 devices have been explanted between 12 and 18 months following implantation and all devices have contained healthy, viable CNTF-producing cells.

The clear implication is that the implanted devices would continue to excrete therapeutic levels of CNTF longer than the 1-year threshold for the study. This is proof-of-principle for Neurotech's Encapsulated Cell Technology platform which may well have sundry other applications.

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Will Dendreon's unblinding and announcement of interim analysis data for Provenge back in October be its final bad decision? Four top statisticians say Dendreon may have compromised the integrity of the trial by putting out the release. They say it was unorthodox for Dendreon to even know such a detailed result, much less to publicize it. The danger: The company, patients or doctors might have changed what they were doing once they knew how the study was going. If the final outcome is only marginally statistically significant, it might be tossed, putting Dendreon and its drug back at square one. The statisticians are left scratching their heads at the data release. "I have no idea what their rationale would have been," says Susan Ellenberg, a statistician at the University of Pennsylvania. "I can't rule out the possibility that they did have a reason I'd be comfortable with, but I can't think what it might be."

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Finally there is some news about a US company treating patients in a clinic outside the US in a way that many would say has hallmarks of scientific credibility. Two years ago DaVinci Biosciences, headquartered in Costa Mesa, California, treated 52 acute and chronic spinal cord injury patients in Ecuador with injections of their own bone marrow-derived stem cells. They conducted follow-up studies and have now published the results for the first 8 patients in issue 17(12) of Cell Transplantation. The follow-up report claims that MRIs have revealed "noticeable morphological changes within the spinal cord after administration of autologous bone marrow derived stem cells." There was no tumor formation, increased pain or deterioration of function following administration of the stem cell treatment. The researchers conclude that the therapy proved safe and effective in improving their quality of life. Although there are plenty of stem cells clinics claiming anecdotal evidence (not published in peer-reviewed journals) of the therapeutic effect of such treatments and there have been numerous studies in animals demonstrating the benefits of stem cell treatment for the treatment of spinal cord injury, this may be the first published study of its kind.

COMMERCIAL

In what is now becoming a trend between large pharma and research institutes, the Salk Institute announced a strategic alliance agreement with Sanofi-Aventis establishing the Sanofi-Aventis Regenerative Medicine Program (SARP). Financial terms of the three- to five-year agreement were not revealed.

Saying that the program was without "restrictive preconditions", the announcement was vague on details about the anticipated nature of the collaboration other than it would sponsor "institute-wide discovery grants in promising research areas that address the organizations’ mutual interests" It was also unclear what types of results or products Sanofi expected to get from the program other than "research retreats and "extended working lab visits". The San Diego Business Journal reports that Sanofi-Aventis will have the option to license any discoveries that result from the collaboration. It's not clear to me how this fits with the deal Salk made last year when it partnered with another French pharmaceutical company, Ipsen, in a deal worth $10 million over five years. It's also not clear to me if this is an investment in cell as therapies or more about cells as tools. We can not necessarily infer the former simply from the "Regenerative Medicine" name put to the program.

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Stratatech Corp. announced that it has launched the StrataTest® human skin model. Composed of both an epidermis and a dermis, the StrataTest® human skin model is said to display the physical, chemical and histological characteristics of native human skin. The tissue is supplied in a 24-well format for consumer product testing, drug discovery and toxicity screening.The StrataTest® human skin model, which is intended for research use only, is manufactured using Stratatech’s proprietary NIKS® human keratinocytes. Stratetech believes the product offers a "superior, cost-effective, in vitro testing skin model that it believe enables better prediction of in vivo biological response for consumer product, drug discovery and other toxicity testing applications.”

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Stepping into a space owned primarily by MaxCyte and Lonza's Amaxa BioSystems, Invitrogen, a division of Life Technologies (NASDAQ:LIFE) announced the launch of it's "Neon Transfection Device", a bench-top device for the delivery of DNA, RNA, and proteins into a wide range of mammalian cell types, especially difficult to transfect cells, such as many types of primary and stem cells. The Neon Transfection Device is reportedly well suited for gene and siRNA delivery into stem cells, features a unique transfection chamber that minimizes cell death, has minimal reagent requirement, and works with many different cell types.

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Progenitor Cell Therapy, LLC (PCT) announced that Lisa Doria-Cavuoto will be joining the company as Vice President of Commercial Cell Therapies, effective April 1, 2009. In this role, she will be responsible for managing the day-to-day business operations of PCT's commercial stem cell processing, storage, and clinical distribution service.

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Former GE Healthcare & Thermogenesis executive, Dan Segal, is heading up a newly minted private cord blood bank in Orange County, California called PacificCord.

RESOURCES, EVENTS, & MISCELLANEA

ISCT has released a call for Late Breaking Abstracts in the following categories:
  • Mesenchymal and Tissue Stem Cells
  • Hematopoietic Stem Cells
  • Gene Therapy
  • Immunotherapy and Dendritic Cells
  • Cell and Tissue Evaluation
  • Lab Practices
  • Legal and Regulatory Affairs
  • Translational Process Development
Deadline for Submissions: April 3, 2009. Notification of Abstract Status: April 10, 2009

Click here to submit.

Sign-off...

I spoke this week to an American-trained plastic surgeon now practicing in Asia. In 2006 he paid (presumably handsomely) to attend a symposium hosted by 3 European "professors" on commercial "cell therapy" techniques that are being sold today in select jurisdictions and which could bring longevity and youthfulness to clients everywhere and, I assume, fame and fortune to the doctors brave enough to sell them. One was "live stem cell therapy" using rabbit fetal cells and the other was "fresh/frozen cell therapy" using cells from sheep embryos (or placenta?). He was so impressed he bought into the program, tried it on himself, his family, and then, convinced it was safe, started to sell it to clients. The good doctor I spoke with was using the sheep product, as many others are doing, and administering them not topically but intra-muscularly for "skin rejuvenation".

Long story short, he is now being prosecuted by his Medical Council for providing non-evidenced based medicines. Here's the rub. This all sound quite ghastly to many of us but there is at least one clinic in Switzerland that has been injecting sheep cells into people for over 50 years without any apparent safety issues and to the endless, anecdotal accolades of clients who claim enhanced youthful visages, energy, sex drive, longevity, etc. What's more, there is an internet site where you can buy sheep placenta capsules and even human placenta injectibles. I won't link to any of these sites because I don't want to give them the web traffic but a quick Google search will lead you to multiple clinics and distributors.

I don't envy the position of regulators. As much as a clear and enforceable regulatory framework is critical to the industry, so is a strong and properly financed regulatory authority. Equally important is that we as an industry be vigilant in protecting the quality of our science, our medicines, and our patient's health. We are not grappling with easy issues here. Perhaps the injection of sheep or rabbit fetal cells are the cure-all they are reported to be but what it they're not and we're injecting them into human for non-life-threatening conditions?

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That's the kind of week its been. Feel better about yourself and tell a friend about the Cell Therapy Blog today! :-)


Tuesday, March 17, 2009

Cell Therapy Industry HiLites 2009-03-13

I know, I know. I'm way off schedule. I'll try to post some shorter, snappier editions of the Cell Therapy Industry HiLites over the next few days in order to catch up but you know what they say about good intentions...



CIRM is repositioning itself more firmly as a translational agency, preparing for NIH to take on some of the burden of funding basic research.

One cell therapy and one cell-based gene therapy made R&D Direction list of 100 great investigational drugs for 2009 as selected by the editors: Prochymal (allogeneic mesenchymal stromal cells) by Osiris/Genzyme for acute mycardial infarction and VRX496 (
lentiviral vector transduced autologous CD4 T cells) for HIV/AIDS.

___________________________________________________________________

Cell Therapy Blog wants your ad. If you're looking to get high-impact and lasting exposure to those in the cell therapy industry...


Contact Lee [at] celltherapygroup [dot] com
____________________________________________________________________

FINANCIAL

Perhaps a sign of the times, I discovered this posted on LinkedIn recently:

Opportunity to acquire assets of a preclinical diabetes therapy company in Chapter 7

MicroIslet, Inc. has developed a treatment for Type 1 Diabetes involving the transplantation of non-human islet cells. Due to the company's previous capital structure and the collapse of the capital markets in late 2008, MicroIslet filed for Chapter 11 reorganization. The bankruptcy case was converted to Chapter 7 liquidation last month.


The estate owns significant intellectual property and is party to an exclusive contract to source islet cells from a unique supplier. Management estimates a six month time frame to file the IND. Animal and toxicity studies are complete with favorable results.

For more information about the company and its assets visit www.microislet.com or reply to me.

Thank you
Brian Conn
Chief Financial Officer at MicroIslet, Inc.

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Last year, Cytori Therapeutics, Inc. (NASDAQ:CYTX) raised $12 Million in February in an equity purchase and strategic collaboration agreement with Green Hospital Supply, then in August they announced raising $17 million from a private placement financing led by Olympus Corporation (TSE: 7733) with participation from select institutional investors, and finally in October they entered into a $15 million loan facility with GE Healthcare Financial Services and Silicon Valley Bank.

Despite all this, in the company's Form-10K filed with the SEC on March 6, 2009, the Company's auditors issued an audit opinion that includes a matter of emphasis paragraph relating to the Company's ability to continue as a going concern.

Consquently, this week the company announced it had closed and received net proceeds to raise $10 million, before placement agent fees and offering expenses. The funds will be used for sales and marketing activities related to the commercialization of the Celution(R) System and consumables as well as other related and complementary products, for ongoing clinical studies of the Celution(R) System for breast reconstruction and cardiovascular disease, for ongoing research and development to support the Company's products and its pipeline development, and for general working capital.

Due to the closing of the financing subsequent to the issuance of the auditor’s opinion, Cytori has substantially improved its cash position, which the Company believes
may fund its operations through at least 2009 as described in the liquidity and capital resources discussion of its Form-10K.

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MolMed S.p.A. (Milan:MLM) Board of Directors reviewed and approved the draft year-end financial statements as at 31 December 2008. The company reported a Positive net financial position of €35.3 million, consisting of cash, cash equivalents and current financial assets, operating costs totalling € 23.1 million, and a loss of € 17.4 million (an average of over €1.4 million/month on average), as compared to a loss of € 12.7 million in 2007. The notable improvement of MolMed’s net financial position, from € 5.7 million as at 31 December 2007 to € 35.3 million as at 31 December 2008, is due to the IPO proceeds of €56.2 million derived from MolMed’s listing at the Milan Stock Exchange.

Almost in passing the year-end review stated that MolMed and
Takara Bio Inc. have agreed to terminate their research collaboration in AIDS gene therapy to give full focus to their respective, more advanced programs .

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Stem Cell Therapy International Inc. (OTC BB:SCII.OB) announced that they have obtained short term financing, enabling the Company to "update" and finalize the merger between Stem Cell Therapy International, Inc. and the Histostem Corporation, Ltd. (Korea) which has been filed previously with the SEC. I don't know what it means to 'update' a merger but it would appear this loan will get it finalized.

The Company got a whopping $150,000 and 6 months or less to repay to the lenders $187,500.
This short term financing will allow the Company to continue to "pay necessary vendors to maintain the Company's public filing requirements, begin collaborations of operations between Histostem and AmStem International, finish the documents necessary to continue with the private placement and proceed with the execution of the Company's strategic plan."

AmStem International is the name of the new company intended to result from the merger of Stem Cell Therapy International, Inc. and HistoStem, Ltd. of Korea. Histostem reportedly operates the largest accredited Cord Blood & Stem Cell bank in the world (more than twice as large as its nearest competitor) and is said to be already successfully treating patients with its patented, Korean FDA-approved stem cell therapies. Histostem is one of only a few stem cell companies in the world currently earning several million dollars in income from its cellular products and technology.

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CLINICAL

While desperately looking for enough cash to last beyond mon
th's end, Isolagen, Inc. (Amex: ILE) has managed to submit its Biologics License Application (BLA) for Isolagen Therapy, a cellular therapy for the treatment of wrinkles/nasolabial folds, to the U.S. Food and Drug Administration (FDA). The Company's wrinkles/nasolabial folds Phase III trials were conducted under an FDA Special Protocol Assessment. The company also recently completed its Phase II/III trial for the treatment of acne scars with statistically significant efficacy results. Meanwhile the company is actively pursuing financing and/or strategic partnerships including the potential sale of its 57% ownership interest in Agera Laboratories, Inc.

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TissueGene, Inc. announced that its South Korean licensing partner Kolon Life Science, Inc. (KLS) has received regulatory allowance from the Korea Food and Drug Administration (KFDA) to initiate a Phase IIa clinical trial of TissueGene-C (TG-C) in patients with severe osteoarthritis of the knee. TG-C has been developed for the localized delivery of allogeneic human cells expressing TGF-beta1 in order to induce the regeneration of cartilage. TissueGene is currently completing Phase I clinical trials in the U.S. and continues to work closely with KLS in order to coordinate their regulatory efforts and efficiently conduct parallel clinical trials for TG-C in both the U.S. and Korea. In Asia, TissueGene has licensed intellectual property rights to KLS, a subsidiary of Kolon, for the clinical development and commercialization of TissueGene's lead product candidates TG-C and TG-B, developed for the regeneration of cartilage and bone, respectively.
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The Gamida Cell-Teva joint venture announced that orphan designation was granted by the European Commission for the investigational medicinal product StemEx® for the treatment of acute lymphoblastic leukemia and acute myeloid leukemia. The European Commission consequently follows the positive opinion of the European Medicine Agency's Orphan Medicinal Products Committee. The FDA granted StemEx orphan drug designation in March 2005 for use as hematopoietic support in patients with relapsed or refractory hematologic malignancies (cancer of the blood system) who are receiving high dose therapy.

StemEx is a graft of expanded stem/progenitor cells, derived from a single unit of umbilical cord blood and transplanted in combination with non expanded cells from the same unit. It is currently being researched as an alternative to a bone marrow transplant, for patients with certain blood cancers, in an advanced Phase III, pivotal study called ExCell

By EU regulation, orphan medicinal products are intended for the diagnosis, prevention or treatment of life-threatening or chronically debilitating conditions that affect no more than five in 10,000 people in the European Union, or are medicines which, for economic reasons, would be unlikely to be developed without incentives. Benefits include, among others, market exclusivity in the European Union for 10 years from the date of the orphan medicinal product designation and an EMEA fee-reduction for the drug.

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Stemedica Cell Technologies, Inc., ("Stemedica") announced that they had received the results from a Stemedica-sponsored clinical study conducted by "renowned stem cell researcher and clinician" Professor Philippe Hernigou, MD, Ph.D. The "approved" clinical study is said to have involved treatment of non-union bone injuries (specifically tibia fractures) using autologous stem cells, allogeneic stem cells and comparative traditional treatment therapies. The results presented to the company by Dr. Hernigou were said (by Company leadership) to be "exciting and profound ... in comparison to other traditional treatments". The year-long study is said to have included sixty patients and part of an on-going, ten year study involving nearly four hundred patients by Dr. Herningou using stem cell therapy and traditional treatment of non-union bones and joints. Stemedica has conculded the study gives "clear evidence that the use of adult stem cells provided greater healing capability in a shorter period of time with less infection". What is not clear whether anyone else will be granted the privilege of looking at the data. This begs a number of questions. Do they intend to publish? What was the study design? What kind of study was it? What is Stemedica's intent for this data?

Having previously ran into some trouble with a scandal associated with the Premier of Bermuda, the company is busily attempting to reinvent itself by distinguishing itself from those other international stem cell clinics claiming to treat a host of diseases for a fee without registered clinical trials, publications, etc.

Here's what we know. In addition to their US operation they have "facilities" in Moscow, Russia and Seoul, Korea. They also have partnership with a hospital in Tijuana, Mexico providing stem cell treatments for Alzheimer's, Parkinson's, Multiple Sclerosis, Muscular Dystrophy, Stroke, Ischemic Brain Trauma, Spinal Cord Injury and other neurodegenerative conditions and diseases. They say they only provide their stem cells to "hospitals and research centers that are conducting studies under protocols approved by the appropriate regulatory agencies". They say their San Diego facility is "designed and constructed to be in compliance with appropriate FDA regulations including cGMP’s – Current Good Manufacturing Practice and GTP’s – Human Cells, Tissues and Cellular and Tissue-based products" and had CIRM leadership tripping over themselves recently after a visit their San Diego site to give the company and its facility glowing testimony (as reported in last week's blog). They say that they intend to conduct "future clinical studies in the United States".

Announcements like their recent proclamation of "exciting and profound" study results without publication are unlikely to dispel the critics that say this is more smoke masquerading as fire.

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Ok, this isn't "clinical" and I usually don't report on pre-clinical results but this one excites me and...it's my blog so skip to the next story if you don't wanna read it! (smile)

Opexa Therapeutics, Inc. (NASDAQ: OPXA) announced it has new preclinical data showing that cells obtained from peripheral blood of healthy and diabetic patients have the ability to differentiate - employing Opexa’s proprietary technology - into insulin-producing islet-like clusters demonstrating many of the expected characteristics of true pancreatic islet cells including the ability to secrete insulin, glucagon and somatostatin. Additional studies recently completed by Opexa’s scientists also reportedly support these findings showing high levels of C-peptide, a by-product of insulin synthesis, within these islet-like cells, as well as many key stem cell and pancreatic biomarkers. They also claim that in vivo studies involving the subcapsular kidney transplantation of these islet-like clusters into diabetic NOD/SCID mice resulted in a reduction in the blood glucose levels for prolonged periods of time.

Additional preclinical studies are planned to examine optimal dosing, delivery and route of administration of the islet-like clusters, and toxicology. Following a preliminary meeting with the FDA and through consultations with its Clinical Advisory Board, Opexa has designed a Phase I clinical study protocol. Primary endpoints are proposed to be safety of monocyte derived pancreatic-like islet cell transplantation and insulin independence or reduction in exogenous insulin requirements at one year post initial infusion.


COMMERCIAL

DNAmicroarray, Inc. in San Diego provides proprietary systems for controlling the differentiation of human stem cells. This is the low-hanging research tools business—the so-called shovels and blue jeans—to the scientists panning for gold. Still, while this is good business, DNAmicroarray president Babak Esmaeli-Azad told Xconomy San Diego editor, Bruce V. Bigelow, that he has also personally invested $2 million on internal stem cell research for potential therapies.

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Cryo-Save Group, the Netherlands-based stem cell company with a large Indian presence, plans to increase the number of stem cell donors in the country by opening more representative offices. Cryo-Save Group plans to invest €2 million (about Rs 13 crore) in its Bangalore-based subsidiary for over three years. Currently, the company is operating in Delhi, Mumbai, Pune, Ahmedabad and Bangalore. By the end of the year, they plan to open three additional centres, of which one will be in Kolkata, with a plan to expand into other South Asian countries by end of 2010. Cryo-Save currently charges Rs 75,000 per person to save a child’s umbilical cord blood and stem cells. This includes collection, processing and storing the cells for about 21 years.

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Just days after its purchase of Genentech, Roche has made another acquisition, albeit a much smaller one, of the German firm Innovatis. Roche has signed a definite agreement to buy the company for EUR 15 million. Innovatis provides automated cell analysis solutions, focusing particularly on cell counting, viability testing and cell function analysis in research and bioproduction. The deal is expected to be completed within the next few weeks.
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Lonza Group Ltd has announced that Anja Fiedler will replace Shawn Cavanagh as Head of Lonza Bioscience headquartered in Walkersville, MD. Anja Fiedler will become the new division head and member of the Lonza Management Committee (MC) as of 15 April 2009. Shawn, it is reported, "will leave the organization to pursue other interests". It does make one curious whether these other interests were what motivated him to leave or whether once he was shown the door we can only imagine he will now be motivated to find other interests. Whatever the case they did thank him for his dedication and wished him well in his future endeavors. Anja, curiously enough, comes to Lonza from outside the industry, most recently having been with Philip Morris. Is this a sign of more shake-ups to come as Lonza really starts to come to grips with its Bioscience acquisition now that it is fully integrated or is this just a one-off personnel changeup? Time will tell.

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The research tools sector - Life Technologies Corporation (NASDAQ:LIFE) and Sigma-Aldrich (NASDAQ:SIAL) in particular - are expected to report above estimated earnings given expected fallout of spending to occur from the Obama administration's recent decisions.

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Likely negotiating like its life dependended on it (oh ya, it does!),
Isolagen, Inc. (Amex: ILE) has announced that the United States District Court for the Eastern District of Pennsylvania has issued an order granting preliminary approval of an agreement to settle its securities class action lawsuit and its two derivative actions against the Company and certain of its current and former officers and directors.
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BioLife Solutions, Inc. (OTC Bulletin Board: BLFS) announced that an independent European comparison of the Company's CryoStor pre-formulated serum-free and protein-free biopreservation media against traditional in-house formulated culture media/serum/DMSO showed CryoStor offers a significant cryopreservation process improvement and better cellular outcomes. Compared to media/serum/DMSO, CryoStor enabled enhanced post-thaw cell membrane integrity and a full recovery of metabolic activity and differentiation capacity within 24 hours after thawing. The study findings also confirm that despite improved cell recovery immediately after thawing for media/serum/DMSO cryopreserved cells beneath alginate, up to 50 percent cell death still occurred within 24 hours post-thawing.

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Early-stage venture capital firm OVP Venture Partners (OVP) announced today that distinguished scientist Irving L. Weissman, M.D., will join its technical advisory group. Is this a signal of their intent to invest in stem cell plays you think?

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RESOURCES & EVENTS

What am I your secretary? Find your own resources and events! Kidding... sorry I'm a little punchy today. I simply didn't come across anything to include here that I thought was sexy enough for this sexy edition of Cell Therapy Blog.

Sign-off

Ever wonder why Cell Therapy News now only carries advertising from Stem Cell Technologies? Did it ever seem curious to you that they never include news from competitors of Stem Cell Tech's?

Could it be that Cell Therapy Blog is your only source for independent and objective news and analysis in the cell therapy industry?

Help spread the word ...

Friday, January 23, 2009

Cell Therapy Industry HiLites 2009-01-23

I hope to see many of you next week at the Phacilitate Cell & Gene Therapy Forum in Washington, DC. I suspect we are all today much more keenly anticipating Jane Lebkowski's talk (Geron) than we were last week.

I will be giving a short summary of the cell therapy sector in a lunchtime symposium on Tuesday sponsored by Progenitor Cell Therapy. I'll also be there with the founders of BioBusiness.TV interviewing executives, delegates, and doing some face time of my own in front of the camera all in support of an effort to launch a cell therapy channel on the new up-and-coming biotech business video site. We're looking for a sponsor for this cell therapy content - if you're interested, let me know - I think it's great value!

As a result of my being away all next week, I will more than likely skip the Industry HiLites posting next Friday. I'll try not to lose any news in the interim between reports.



While it's tempting to lead off with the news of Suzanne Somers' appearance this week for NeoStem (NYSE Alternext US: NBS) on CNBC's "Conversations with Michael Eisner", I suppose rightly so the big news of the week (year? decade?) is clearly Geron's news of FDA approval for its embryonic stem cell-derived therapy (GRNOPC1) for thoracic spinal cord injury patients. I dedicated a brief post last night to the news I helped break based on an early leak by the Morris Daily Herald. I also chewed up a fair amount of Twitter bandwidth this morning doing 'live tweeting' during Geron's webcast. (see http://twitter.com/celltherapy). At midnight (EST) Thursday night, Geron updated their website with everything they're willing to share about their product, trial, manufacturing, testing, etc. It's actually quite informative >> click here.

Earlier in the week in-PharmaTechnologist.com discussed Lonza's implentation of a plan to spend"$26m to expand capacity at its facility in Walkersville, Maryland, "as regulatory progress made with Osiris’ Prochymal looks set to kick start the era of cell therapies". This will add capacity by Q1 2010 to meet anticipated demand by its customer Osiris for production of Prochymal should it be approved.

On the fundraising front, Belgian biotech Cardio3 BioSciences has rounded up €13.7 million from venture groups and grants. Cardio3 raised €7.2 million in a Series B and an additional €6.5 million in cash advances from the Walloon Region General Directorate for Economy, Employment & Research. Much of the new money will be used to fund a 240-patient clinical trial of C-Cure, its lead program. C-Cure is designed to allow the differentiation of a patient's own cells into 'cardiopoietic' cells which grow into new heart cells and repair heart muscle.

Additionally, International Stem Cell Corporation (OTCBB:ISCO) has received the second $1 million tranche of an anticipated private equity financing of up to $5 million to be funded over the next several months. As we speculated might be the case a few weeks ago, the investors were the same as the last round: X-Master, A. Semechkin, and R. Semechkin. According to a recent SEC filing X-Master is a New Hampshire corporation which provides software consulting and computer hardware services and which holds real estate and other assets and investments. The SEC filing also reported that the source of funds for the acquisition of the shares in the previous rounds was primarily from the proceeds of loans made to X-Master by Hartcom Impex, Ltd., a British Virgin Islands corporation and from the working capital of X-Master. Not your garden-variety financing by any means.

After much delay, ReNeuron has received permission from UK authorities to launch a phase I trial for stroke patients using their neural stem cell product ReN001. The ReN001 cells will be administered by direct injection into the affected region of the brain in a straightforward surgical procedure.

The Company submitted an application to the US FDA some time ago to commence a clinical trial in the US with its ReN001 stroke therapy. This application has not been rejected by the FDA, but remains on clinical hold. The Company intends to continue discussions with the FDA in due course concerning this application and potential amendments thereto. The company may need to identify a safe and effective cell labeling technology to track these cells before it wins approval in at least some other jurisdictions outside the UK.

Financially, the Company intends to raise further funding for its programes over the course of this year, and its convertible loan facility from certain existing investors will provide cash resources sufficient to finance the Company's operations into the third quarter of this year. (see articles in the Financial Times and NatureNews for more details).

Angel Biotechnology Holdings plc (AIM: ABH) issued a press release congratulating ReNeuron on receiving this approval because Angel is, of course, ReNeuron's manufacturing partner.

BioBusiness.tv has posted a great interview of Osiris CEO, Randy Mills by Bill Kridel of Ferghana Partners Group. Randy dares to use the word "blockbuster" in conjunction with his expectations for Prochymal. He also reports that Osteocel has now treated 30,000 patients since its launch in July 2005.

Nuvasis, Inc (NASDAQ: NUVA) is projecting $28M in Osteocell sales in 2009. While that's only 8% of its overall revenue outlook of $350M, it's not insignificant. Add that to over 250,000 patients treated to-date by Appligraf (Organogenesis) for total revenue in 2008 alone of ~$70M, ~13,000 patients to-date for Carticel (Genzyme), and the fact Advanced Biohealing's facility is able to produce 250,000 units of Dermagraft per year....and we just might have the beginnings of a viable sector here.

Mesoblast (ASX:MSB) received approval from the Australian regulators to proceed with a randomized, placebo-controlled phase II trial of their allogeneic stem cell product, RepliCart, for knee osteoarthritis after acute traumatic injury. StemCellDigest immediately commented on the potential patent questions vis-a-vis Osiris.

TAP launched its automated 'CellCelector' at SelectBio's Stem Cells World Congress. The device consists of an inverted Olympus microscope, robotic arm and liquid handling station integrated with image acquisition and analysis software. The system allows researchers to set parameters for cell or colony types they want (including size, proximity to other colonies or roundness). The picking tool on the robotic arm gently picks and dispenses cells into a microplate well in just 30 seconds. CellCelector can fit into any standard laminar flow hood and can be fitted with an autoclave compatible metal tool for scraping adherent cells or a disposable glass capillary for picking single cells.

StemCellDigest.net summarized The Money Raising Sagas Of Advanced Cell Technology Inc.

Amidst circulating rumors and clear evidence of financial distress, Opexa Therapeutics, Inc. (NASDAQ:OPXA) - developing patient-specific cellular therapies for the treatment of autoimmune diseases such as multiple sclerosis (MS) and diabetes - provided an update on corporate activities.

Looks like a PerkinElmer has a strategy congealing around its ViaCord/ViaCell acquisition. After announcing a collaboration with MD Anderson last week, this week they announced that its ViaCord Research Institute, which focuses on supporting science, technology and medical treatments using cord blood stem cells, will support the University of Massachusetts Medical School (UMMS) in its research efforts into the potential use of umbilical cord blood-derived stem cells in treating type 1 diabetes.

According to a recent report, while more than 10,000 Australian parents have paid between $3000 and $5700 to have their child's cord blood collected, frozen and stored in the seven years since private collection companies began operating in Australia, no samples have been used for medical treatment.

This one is more the news behind the news. Novartis has recently posted a position for a Regenerative Medicine Ophthalmology Research Investigator PhD/MD. The description? "The candidate will lead a research team dedicated to developing regenerative medicine therapeutics for ophthalmic disease. The team will collaborate with other technology groups within the Novartis Institutes for Biomedical Research (NIBR) to identify novel chemical and biologic modulators of adult stem cells, validate the therapeutic potential of these discoveries, and develop these assets into therapies targeting blinding eye diseases with a high unmet need." So...while it would appear they're stuck on finding non-cell therapy regenerative compounds, they're playing with stem cells. That's a good thing.

With all the other noise around Bioheart (NasdaqCM: BHRT) last week, I missed some important potential good news. Bioheart, Inc. announced last wek that they have filed with appropriate agencies in Switzerland for reimbursement approval for its MyoCell(r) myogenic cell therapy for heart failure. The initial reimbursement application filings are targeting the sickest Class III and IV heart failure patients who have not responded well to drugs and do not qualify for a bi-ventricular pacemaker. Bioheart is applying for a reimbursement level matching exactly that charged to provide bi-ventricular pacemakers for this same patient population.

So how can companies like Bioheart file for 'reimbursement' before the therapy is approved? I asked this question of Eric Faulkner of RTI Health Solutions. He provided this answer. "This is not a filing for ‘full reimbursement’ but is a filing for reimbursement subsidy for their clinical trials in certain target markets. Usually these are competitive and not every thing gets funded, but if approved the manufacturer likely covers some costs (e.g., cells, catheters, etc.) and the hospital would be covered by the govt. (e.g., some of the inpatient facility and provider costs). This can be a way to defray costs of conducting the trial leading up to regulatory market clearance. CMS and some limited # of US commercial payers have similar provisions in areas of high unmet need." I learned something.

Linda Powers took advantage of all the hype and interest around Geron's news to remind the world through an article by John Sterling in Genetic Engineering News that her $140 million Toucan Capital venture capital fund "holds the largest number of stem cell, regenerative medicine, and living cell companies in the world [16 companies]". She also stated "not enough attention is being paid to the biomanufacture of stem cells and other living cells" like is done by her portfolio company Cognate Bioservices.

Lord knows looking at my stock portfolio, I'm no stock analyst - not even a good stock picker. With that in mind (i.e. this ain't no stock recommendation or even general negativity about Dendreon), below is a little analysis on Dendreon this week by David Gaffen on Wall Street Journal's MarketBeat blog that I share with you more for what it tells me about the trial, the data, and analysts' thinking than for what it might mean for the stock:

It’s been a rough week for Dendreon, a biotechnology stock with a fervent group of followers that wait with baited breath for every bit of news about its Provenge treatment for prostate cancer. The stock was hit hard earlier in the week after news that data from company’s ongoing trial for its treatment will be released in April, earlier than expected, because the trial has surpassed the threshold for number of deaths to incur a final analysis. The problem, as some Wall Street analysts see it, is that the company amended its trial late in the process to include sicker patients. The drug needed to show a 22% reduction in the risk of death to be successful, and it was at 20% earlier in the trial. “We firmly believe that the death events occurring after the May 2008 cutoff date consist of a greater percentage of patients that were enrolled later in the trial (i.e., sicker patients), which would make it even harder for any drug to offer interim analysis,” write analysts at Brean Murray Carret & Co. “Therefore, the 20% difference reported at interim is actually further from the 22% goal required at final analysis than it may seem at first glance.” Some are remaining optimistic, however, including David Miller, who writes on Minyanville.com that “long-suffering Dendreon bulls (like me) will be rooting for those extra 2 points of patient benefit.” This stock has been a volatile one — and if the 22% threshold is reached, expect wild action. Shares hit a 52-week low of $3.42 Tuesday.

Finally for you lab-heads and quality-geeks out there... ISCT is offering a webinar February 18, 2009, entitled (Part 1): Validation and Qualification of Equipment and Reagents.

And that wraps up a momentous week for cell therapy. I love the smell of stem cells in the morning...

Safe travels.

Thursday, August 28, 2008

Cell Therapy Manufacturing Market

Just to prove I haven't abandoned serious blogging to become a cartoonist, I've got a heavy one for ya. Grab a beverage and a comfy chair - this one’s a little dense for a blog but I excerpted it out of an article I'm submitting for publication and didn't want it to go to waste...

This is my attempt to define the cell therapy manufacturing market. According to my database, there are currently 700+ stakeholder companies[i] in the cell therapy sector. This includes ~250 therapeutic “cell therapy” companies with approximately 344[ii] products in the market or in some stage of clinical or pre-clinical development[iii].

Companies
My data suggests the cell therapy products around the world (both commercially available and in development) can currently be broken down into the following categories:

Table 1
Manufacturing Costs
What follows is a sample analysis of one way to assess the manufacturing sector of the cell therapy market.

For the purposes of this analysis, I have assumed average spending at the various stages of therapeutic product manufacturing to be that shown in the table below. It must be noted that while these numbers are clearly within the range of what a company might spend at each phase they are chosen merely for illustrative purposes and are NOT the result of any researched conclusion that these numbers represent the average or mean amount spent by companies.

Table 2
Using those averages and based on the number of products in each stage as outlined in Table 1, the current global value of cell therapy product manufacturing would be estimated to be as follows:

Table 3
Manufacturing as a % of Global Cell Therapy Market
A $542 million manufacturing expenditure in 2008 would represent 2.2% of an overall market estimation of $25 billion (see my upcoming paper for more analysis of why I believe this is the best available estimate of the 2008 cell therapy market as I define it). This would average out to roughly $1.6 million per product and $2.2 million per company spent on manufacturing[vi].

To help test the accuracy of these calculations, Michael Lysaght graciously provided the data set behind his recent publication in Tissue Engineering[iv]. Lysaght provided the annual expenditures for over 150 therapeutic companies broken down by phase of development (pre-clinical, phase I, II, II, and commercial). The average expenditures per company by phase are shown below:

Table 4
Using the previous estimations of manufacturing costs-per-phase as shown in Table 2, one can estimate what percentage of overall annual expenditures is represented by manufacturing costs in the different phases of development. These are show below:

Table 5
Based on those figures, the overall estimated amount spent on manufacturing by these companies in 2008 would be $160 million. Using Lysaght’s current market estimate of $3.4 billion, $160 million represents 4.7% of the market.

Based on both these calculations, the amount of money spent on manufacturing as a percentage of the overall market would lie somewhere 2.2% and 4.7%.

If one applies these percentages to a broader market definition and the broader market assessment at $25 billion market, the manufacturing subsector would be between $550 million and $1.175 billion.

It should be noted, however, that Lysaght’s “market” does not include all therapeutic companies as I define the sector and also excludes tools, reagents, services, non-clinical research, etc.

It is also worth noting that percentage-of-market is quite different from percentage-of-expenditures. Most organizations developing therapeutics are likely to spend more like 10-20% of their cost of goods on manufacturing but the market is comprised of more than just therapeutic companies’ expenditures thus explaining the lower percentage as expressed as a percentage of the market.


Outsourced Manufacturing Market
Based on information gleaned from public sources and confidential discussions with the primary contract manufactures in the industry[viii], I believe approximately 40 of the total 340+ cell therapy products currently in development or on the market – approximately 12% - are being outsourced to corporate contract manufacturing organizations (CMOs)[ix] for manufacturing.

On another analysis, again based on information gleaned from public sources and confidential discussions with the primary contract manufactures in the industry[x], I believe not more than $60 million is being spent this year for CMO manufacturing services. This represents ~11% of the ~$550 million used in the sample analysis above.

Based on data from more mature predecessor biotechnology sectors, a number of experts believe the rate of manufacturing outsourcing will increases as the cell therapy industry matures.

According to a 2005 survey conducted by BioPlan Associates[xi], 35% of biomanufacturers were at that time outsourcing at least some of their biologics production in mammalian, microbial, yeast, plant, or insect systems. These manufacturers projected this number would increase by 30% by 2008. Overall, nearly half of all biopharmaceutical manufacturers responded that they might contract-out production of biologics by 2008. According to a 2005 Frost & Sullivan report, the global contract manufacturing industry for pharmaceuticals was then projected to grow at a rate of 11% over the next 6 years from $13.6 billion in 2005 to $25 billion in 2011 [xii].

I believe it is reasonable to assume that the percentage of products in the cell therapy sector being outsourced for manufacturing will increase.

In addition to a growing rate of outsourced manufacturing, it would be fair to assume growth in the overall dollar value of the outsourced manufacturing market based on the assumption that the products currently in commercial or mature stages of the development pipeline are comprised of a higher percentage of simpler and unregulated cell therapy products than is represented in the second wave of cell therapy products now making their way through the development pipeline.

While this may not represent a linear path of growth if the third wave of products are – more proportionately allogeneic and arguably again on the simpler side of the processing-complexity scale – it is reasonable to expect manufacturing costs to be higher for the same number of products over the next five years than they have been for the past 5 years. Depending on the development of embryonic stem cell (ESC) products, one can currently expect they will involve a more complex manufacturing process and therefore again raise manufacturing costs comparatively.

Based on this data and understanding and given an industry CAGR ranging from 13-40%, it would appear conservative to project that the global contract manufacturing business for cell therapy products will grow at a rate of at least 2% per year above the sectors’ CAGR over the next 5 years.


Summary
Based on the assumed manufacturing-expenditures-per-product-phase in Table 1, the total spent on cell therapy product manufacturing is estimated to be around $542 million.

Based on an estimated $25 billion cell therapy market in 2008, this means somewhere between 2.2% and 4.7% of the overall market is spent on manufacturing.

Approximately 11-12% of cell therapy product manufacturing is currently outsourced to private, industry contract manufacturers with this rate expected to grow faster than the market over the next number of years.

The assumed manufacturing-expenditures-per-product-phase in Table 1 are gross estimated averages. Changing these numbers skew the end result considerably. Consequently this is no better than a a rough-order-of-magnitude and sample assessment of the industry's manufacturing costs but I hope it serves to inform further discussion and better analysis.

As always, I welcome your comments and hope a few of you will read this close enough to point out any errors or ways we could improve this analysis ...

--Lee
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[i] Estimates range from ~225 to ~300 therapeutic companies among what I define as ~700 stakeholder companies in the cell therapy industry. Sources: author’s database; Cell Therapy Pages (Connexon Communications); Proteus Venture Partners; Bionest Partners. Cell therapies and tissue engineering. February 2007; Burger SR. 2004. Cell and Gene Therapy - Challenges and Strategies for an Emerging Industry. Cell and Gene Therapy 5:9-14.
[ii] For the purposes of my analysis below I have lowered this to 329 product discounting basic stem cell transplants being done commercially by companies in various countries. Even the larger number (344) does not include pre-licensed “products” being researched or “developed” by academic institutions.
[iii] “Pre-clinical development” is defined to product in development prior to initiation of a phase I trial but not including products in the early research phase.
[iv] This figure is based on calculations from the data used by Michael Lysaght, PhD, Professor and Director of the Center for Biomedical Engineering at Brown University, in publication of Lysaght M, Jaklenec A, Deweerd E: Great Expectations: Private Sector Activity in Tissue Engineering, Regenerative Medicine, and Stem Cell Therapeutics. Tissue Eng 14, 305. 2008. That data indicates that the average annual spending of companies categorized as “commercial” was $30 million. I then assumed that manufacturing represents 10% of annual expenditures based on the calculation that manufacturing represents between 8-15% of annual expenditures cited by Lysaght in the data. Annual expenditure for commercial-stage manufacturing does and will vary wildly depending on the type of product and the volume of production by as much, for example, as $1.5 million and $80 million for production of 20,000 products per year - the difference largely driven by the products being allogeneic versus autologous.
[v] Calculated using 53 companies discounting for at least some of the basic stem cell transplants being done commercially by companies in various countries.
[vi] Calculated using 329 products and 250 companies.
[vii] Average annual expenditure of the 26 company in the Lysaght database with at least one product listed.
[viii] Lonza, Progenitor Cell Therapy, Cognate BioServices, Apptec Laboratories, Angel Biotechnology, Eufets, Cell Therapy Pty, and PharmaCell. We have not included products outsourced to other biotechnology companies using excess capacity to provide contract services not products outsourced to academic centers.
[ix] This excludes manufacturing being done by pharma partners, academic institutions or non-profit organizations.
[x] Lonza, Cognate BioServices, Apptec Laboratories, Angel Biotechnology, Eufets, Cell Therapy Pty, and PharmaCell. I have not included products outsourced to other biotechnology companies using excess capacity to provide contract services not products outsourced to academic centers.
[xi] “Advances in Large Scale Biopharmaceutical Manufacturing and Scale-Up Production, 2005”, a survey by BioPlan Associates, Inc. (2005), as quoted in Broeze RJ: Key Challenges facing Bio Manufacturing, BioProcessing & BioPartnering 1 (2006).
[xii] Frost & Sullivan: Global Pharmaceutical Contract Manufacturing Market 2005.