Biorelease's Erythrogen cell culture additive business will be included in the spinoff of the subsidiary prior to completing the proposed acquisition.
During the development and evaluation of the subsidiary's cell culture product, Erythrogen, the subsidiary discovered possible therapeutic applications of this technology which have now been incorporated into its patent applications.
As a part of evaluating the potential of the license opportunity, the subsidiary expects to seek one of the blood substitute producers to form a cooperative agreement to commence in vitro and animal model screening of formulations similar in composition to Erythrogen for therapeutic activity relating to the possible use of its proprietary modified hemoglobin as a healing agent for wounds and burns as well as a vasodilator for use in sickle cell anemia, possibly stroke and certain neurodegenerative diseases.
Operating expenses have been reduced reflecting a recent restructuring whereby the company has reduced staff and focused exclusively on Erythrogen sales and distribution and activities dedicated to sustained drug release research based on the company's chondroitin sulfate patent position.
is dedicated to marketing its proprietary cell culture additive Erythrogen and continuing the research and development of its patented sustained release technology based on chondroitin sulfate.
Revenues generated from the sale of Erythrogen are expected to contribute initially to the company's development of additional cell culture additives, and later to the development of the pharmaceutical applications of our chondroitin sulfate technology.
The company's two-tiered marketing strategy includes marketing Erythrogen as a proprietary product to the academic and industrial research communities, as well as sourcing the product on a bulk basis to leading cell culture supply companies to improve the efficiency of their existing cell culture media products.
One of the industry sectors targeted for Erythrogen is the insect cell culture market, which has been featured in biotechnology publications recently as a rapidly growing production method of choice.
Biorelease management noted that based on favorable data generated in recent months on Erythrogen, the company has accelerated its plans to launch the product by initiating pre-marketing activities, including pilot production, sampling media suppliers, developing technical applications data, and recruiting in-house sales support personnel.
We are excited about the emerging profile of Erythrogen, and about its potential for improving the productivity of cell culture.
Erythrogen is a proprietary modified bovine hemoglobin cell culture product which, when used as a laboratory additive, will require no FDA trials or approvals.
As we move forward into 1993, we will continue toward the commercialization of Erythrogen, and our proprietary chondroitin sulfate sustained release technology, exploring its application both in cell culture and therapeutic markets.