Athersys Inc. Prepares for Human Clinical Trials

Strategic Insights -

Athersys Inc., a Cleveland-based biotech company, is gearing up for an exciting year with multiple initiatives underway. The company is planning to begin human clinical trials for an obesity drug and a stem cell treatment for cancer patients this year. These trials, pending the success of animal and laboratory testing, are expected to bring significant licensing revenue and royalties for Athersys.

Key Takeaways:

  • Athersys is preparing to begin human clinical trials this year on an obesity drug that suppresses appetite, which may be safer and more potent than similar drugs in development.
  • The company plans to win FDA clearance this year to start human clinical trials of a stem cell treatment for bone marrow transplants in cancer patients.
  • Athersys has ongoing work with big pharmaceutical firms, including a renewed three-year licensing agreement with Bristol-Myers Squibb, which has led to the creation of several drugs.
  • The company may partner with a large biotech or drug company to help pay for FDA-required testing in exchange for a stake in the product if it gets to market.
  • Athersys is also trying to secure grants and private equity investments to fund its research and development efforts.
  • The company has a history of struggle, having laid off employees in the past, with a current staff size estimated to be around 75, down from a peak of 130 in 2003.

Statistics:

  • The obesity drug development project is expected to receive FDA clearance by spring.
  • Athersys has a renewed three-year licensing agreement with Bristol-Myers Squibb, which has been in place since 2001.
  • The company has similar licensing deals with Pfizer and Johnson & Johnson.
  • Athersys plans to start human clinical trials on another stem cell treatment for heart disease in 2007.
  • The company has 75 employees currently, down from a previous peak of 130 in 2003.

Sources:

  • "Athersys Inc. Prepares for Human Clinical Trials", article in an unspecified publication (date not specified)
  • B.J. Lehmann, Athersys vice president of corporate development and finance
  • Robert Deans, Athersys vice president of regenerative medicine (April 2005)
  • Athersys Inc. itself, as a source of information on its business and projects