BioTime signs deal to purchase Glycosan BioSystems assets; and Cell Targeting

US biotech BioTime (NYSE Amex: BTX), a company that develops and markets products in the field of stem cells and regenerative medicine, says it has signed a definitive agreement to merge Utah-based Glycosan BioSystems) with its wholly-owned subsidiary, OrthoCyte. The acquisition is expected to close by March 18, 2011.

As a result of the merger, Glycosan stockholders will receive a total consideration of around 332,906 BioTime common shares, and warrants to purchase around 206,612 additional BioTime common shares at an exercise price of $10 per share. OrthoCyte will subsequently own all of Glycosan's assets, including manufacturing equipment, inventory, and technology licenses, and will assume Glycosan’s obligations, which at January 31, 2011 totaled approximately $218,000.

Established in 2006, Glycosan has been a leader in developing, manufacturing, and marketing proprietary biocompatible hydrogels that mimic the extracellular matrix (ECM). The ECM is an important and complex mixture of macromolecules that holds cells together in tissues and organs and performs many other important functions, says BioTime. Glycosan’s products have the demonstrated ability to support the growth and directed differentiation of stem cells and are designed as implantable, resorbable matrices for tissue engineering, regenerative medicine, and for research applications involving the laboratory culture of human cells. BioTime expects to utilize the technology in some future stem cell-based therapeutic products and to continue the marketing of the products for research use only.