Executive Summary

CELLTECH THREE THERAPEUTIC AGENTS IN PHASE I/II STUDIES include: a tissue necrosis factor (TNF) product in Phase I and entering Phase II for septic shock; a calcitonin gene related peptide (CGRP), a vasodilator with potential applications in peripheral vascular diseases; and an undisclosed agent under development with another company. Celltech said it will also seek development and/or licensing partners for TNF and CGRP. The majority of Celltech's roughly $ 30 mil. in annual revenues (1988) are currently derived from its monoclonal antibody production business. Celltech has a number of contractual agreements with U.S. and overseas firms for development/production of antibodies, including a 1986 collaboration with American Cyanamid for the development of second generation monoclonal antibodies for cancer detection and treatment. Under terms of the original two year agreement, which was extended last year, American Cyanamid provided Celltech with $ 7.5 mil. in financing. Financial terms of the extended agreement have not been released. Among Celltech's other agreements are: a joint venture with Ortho for production of erythropoietin; a contract with Ortho Diagnostics for production of human anti-D monoclonal antibody; development of human growth hormone for Serono Labs; a licensing agreement with Sankyo for human calcitonin; and an agreement with an undisclosed partner in West Germany for development of human gastric lipase. The firm also has a $ 4.9 mil. contract from the National Institutes of Health, obtained in 1988, "to express genes for the AIDS antigens in its proprietary mammalian cell expression system and . . . raising monoclonal antibodies to the antigens," according to a company release. Approximately $ 5 mil. of Celltech's 1988 revenues were generated by its recently divested diagnostics business, Celltech Diagnostics to Novo BioLabs. The business had originally been a joint venture with Boots. Celltech projects that its 1989 revenues will be in the $ 30 mil. range.