Cambrex acquires Cutanogen

New York, Feb. 2 - Cambrex Corp. said it has agreed to acquire Cutanogen Corp., a privately held biotechnology company focusing on products to treat patients with severe burns.

Cambrex said it believes that Cutanogen's lead product, PermaDerm cultured skin, is the first multi-layered product that combines autologous epidermal and dermal layers of the skin in a product for severe burns that is pliable and grows with the patient, a particular advantage when a burn patient is a child.

Based on preliminary findings from 80 patients that have already been treated with the product and evaluated in North America, PermaDerm cultured skin appears to form permanent skin tissue that is not rejected by the patient's body, Cambrex said.

Cambrex, which carried out the acquisition through its Cambrex Bio Science Walkersville, Inc. subsidiary, will pay $1.5 million at closing and up to $4.8 million, depending on regulatory and commercial milestones.

The transaction is projected to be dilutive by approximately $0.15 per share in 2006, primarily due to the purchase price payments, and accretive in 2007 and after.

Closing is expected in 30 days.

"The acquisition of Cutanogen fits perfectly with our wound care franchise and furthers our reputation in the industry as a well-rounded manufacturing partner," said Shawn Cavanagh, senior vice president and general manager, bioproducts at Cambrex, in a news release. "PermaDerm cultured skin will complement OrCel, a wound healing product from Ortec International, which we expect to market upon its anticipated regulatory approval in 2006."

Cambrex is an East Rutherford, N.J., life sciences company.

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