ANNUAL FINANCIAL REPORT 2010 2010 - TiGenix

6.5.3 Commercial strategyBuilding on its frontrunner position in Regenerative Medicine,its privileged access to key opinion leaders, and this combinedcommercial infrastructure (i.e. an own sales team in core targetcountries and distributors/licensors outside these core markets),TiGenix aims to develop a specialist regenerative and sportsmedicine commercial franchise in Europe.6.5.4 Acquisition of CellerixAs a result of the Contribution, TiGenix (indirectly) acquired theproduct portfolio of Cellerix. Further details on the marketedproducts and commercial strategy of Cellerix are provided insection 6.14.5.6.6 Product and pipelinedevelopment6.6.1 Technology platformsTiGenix’ current commercial product portfolio anddevelopment programmes are based on two core technologyplatforms:• a cell technology platform that has generated the firstgeneration autologous cell-product ChondroCelect and isbeing further developed to provide the next generationof groundbreaking allogeneic stem cell products to treatskeletal tissue disorders and OA;• a biomaterials platform that resulted in the commercialdevelopment of ChondroMimetic.• Cell Technology PlatformStem cells are a key building block in the development ofinnovative Regenerative Medicine products. TiGenix is makingsignificant progress in the development of its proprietary adultstem cell platform, focusing on adult mesenchymal stem cells(MSCs) isolated from the synovial membrane and infrapatellarsynovium fat pad of the knee. This platform forms the basis forthe development of new allogeneic, off-the-shelf cell-basedproducts for cartilage repair and broadens the scope to othermusculoskeletal indicationsas well as opening the perspectiveto develop cell-based treatments for osteoarthritis.TiGenix has identified stem cell populations that showedpromising results in preclinical models for treating meniscaltears and cartilage lesions. These cell populations are beingfurther characterized in view of potentially initiating a clinicalproof of concept study in the future. The research anddevelopment of the stem cells platform and products aresupported by a €1.8 million grant from the Flemish Government(IWT).Biomaterials Technology PlatformThe Biomaterial Technology Platform emerged from theCambridge University - Massachusetts Institute of Technology(“CMI”) collaboration to enable the cost-efficient, commercialscaleproduction of porous, bioresorbable tissue regenerationscaffolds that mimic the composition and structure of complexanatomical locations that comprise a hard tissue (such as bone),a soft tissue (such as cartilage, ligament or tendon) and theinterface between these two tissues. These novel scaffoldssupport the separate yet simultaneous regeneration of (1)cartilage, ligaments and tendons and (2) the bone to whichthey are attached. The biomaterials technology platformenables these devices to be manufactured using three safebiomaterials that are found naturally in the body: collagen,glycosaminoglycans (“GAGs”), and calcium phosphate.6.6.2 Product development strategy andpipelineTiGenix’ approach is to offer a comprehensive solution for thetreatment of damaged and diseased skeletal tissues therebyproviding an efficient therapy to relief the patients’ symptoms.In addition, the Company has the ultimate goal of preventingand/or treating osteoarthritic joints with its different products.The Company’s product development strategy focuses onmoving to off-the-shelf allogeneic stem cell products, offeringthe possibility to develop an off-the-shelf ChondroCelectproduct as well as to broaden the scope of the cell-productportfolio by addressing more advanced cartilage lesionsand other indications such as meniscus tears and ultimatelyosteoarthritis.Cell-based productsTiGenix initially focused its development efforts onChondroCelect, a cell-based product for cartilage regeneration,derived from patient own chondrocytes. The focus of theproduct development efforts in this area has shifted to developallogeneic stem cell products for cartilage repair and ultimatelyosteoarthritis. Previously identified synovial membrane derivedadult stem cell populations have shown promising results inpreclinical models for treating meniscal tears and joint surface124 • TiGenix • Rights Offering