Clinical Cell Culture turning heads in the US

By Pete Young
Tuesday, 08 October, 2002

Perth skin replacement company Clinical Cell Culture (C3) has caught the attention of Nasdaq-listed US artificial skin specialist Integra Life Sciences Corporation.

The result is a research collaboration that could marry C3's epidermal (outer) skin replacement technology with Integra's dermal (second skin layer) scaffolding for treatment of severe burns and scars.

The joint venture involves C3's ReCell kit and Integra's Dermal Regeneration Template.

The potential for combining the two complementary products as a one-step process is "very exciting," said Fiona Wood, the specialist plastic and burns surgeon at the helm of C3.

The self-contained ReCell kit allows harvesting and preparation of a patient's own epidermal cells for re-application to a wound site within 30 minutes. It is still undergoing clinical trials and seeking regulatory approvals.

The Integra template is designed to provide immediate wound closure and dermis regeneration and act as a support structure for epidermal growth. It has been used on about 10,000 patients.

"Severe burns often result in full thickness skin loss involving both the outer epidermal and second dermal layers which need to be replaced quickly to ensure survival," Wood said.

"The goal of this collaboration is to determine if improved epithelialisation can occur using C3's ReCell kits with Integra's template compared to existing treatment protocols.

"Any new treatment that comes out of this research could represent a major advance in the life-saving treatment of major burns victims."

No financial agreement has been forged between the two companies pending an evaluation of the research.

The agreement comes on the eve of a C3 shareholders' meeting that is expected to result in the acquisition of the private company by its major shareholder, ASX-listed pooled development fund ECAT Development Capital Ltd.

The vote, scheduled for October 25, will see shareholders offered ECAT shares and options plus $1.35 million in cash.

ECAT has an available pool of about $6 million and its transformation from an investment fund into a biomed will provide C3 with the ongoing funding it needs.

"As with biotech companies in general, C3 isn't cash flow positive yet but we are moving along and the transaction with ECAT will allow the company to go forward," said ECAT chief investment officer Phil Rees.

Although C3's future is predicated on the ReCell cell harvesting kit, the company is currently generating some revenues from its CellSpray product, a cultured epithelial autograft spray suspension for the treatment of major burns.

The product is being used in two UK hospitals on an evaluation basis which should provide a platform for future discussions with UK regulatory authorities.

C3 is also supplying CellSpray to hospitals in Perth on a contract basis and is making CellSpray sales into several hospitals in eastern States.

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