Genzyme and Osiris Partner to Develop and Commercialize First-in-Class Adult Stem Cell Products

Genzyme Corp. and Osiris Therapeutics has announced that they have entered a strategic alliance for the development and commercialization of Prochymal and Chondrogen, two novel, late-stage adult stem cell treatments that hold significant potential to treat a wide range of diseases.

These stem-cell products are designed to provide therapeutic benefit by controlling inflammation, promoting tissue regeneration, and preventing scar formation.

Under the terms of the agreement, Osiris will commercialize Prochymal and Chondrogen in the United States and Canada, and Genzyme will commercialize the treatments in all other countries. Genzyme will make an up-front payment of $130 million to Osiris, plus potential significant milestone and royalty payments.

Prochymal is currently being evaluated in two phase 3 trials for graft vs. host disease (GvHD) and one phase 3 trial for Crohn’s disease; data from all three trials are expected in 2009.

It is also being studied in phase 2 trials for type 1 diabetes and chronic obstructive pulmonary disease. A phase 2 trial of Prochymal for acute myocardial infarction and a phase 2/3 trial of Chondrogen for osteoarthritis of the knee are expected to begin soon.

Osiris is responsible for the clinical development costs for all ongoing trials, as well as future trials for additional indications through completion of phase 2 development. Osiris and Genzyme will share the cost of future Phase 3 and 4 clinical trials, with a 60 percent Osiris / 40 percent Genzyme split.

“This partnership further strengthens Genzyme’s late-stage pipeline of products with the potential to support our growth beyond 2011,” stated Henri A. Termeer, Genzyme’s chairman and CEO. “Osiris is the clear leader in stem cell technology, which holds the promise to transform standards of care in a number of therapeutic areas in which Genzyme already has a strong presence.”