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Published in U.S. 1 Newspaper on July 12, 2000. All rights
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Cytogen Buys Advanced Magnetics
E-mail: BarbaraFox@princetoninfo.com
Advanced Magnetics has a product with great potential, and Cytogen
Corp. has the sales force to sell it. So Cytogen announced on Monday,
July 10, it will pay $60 million in stock for Advanced
Magnetics, based in Cambridge, Massachusetts.
It seems like a good match. Advanced Magnetics, which develops and
manufactures MRI contrast agents useful for cancer and liver disease,
also has a manufacturing facility and an R&D fund of $19.5 million.
Cytogen, based on College Road, needs R&D money and could use
manufacturing space, but it has a full marketing team selling similar
products to the radiologists.
The real attraction, however, is Advanced Magnetics’ hot new product,
an imaging agent that makes cancer in lymph nodes visible, and this
product has been deemed approvable by the FDA. "Most people don’t
know that the first place cancer spreads to is the lymph nodes.
Instead of taking a biopsy, you can give an injection and 24 hours
later take a picture," says Richard Krawiec, Cytogen’s vice
president of investor relations. Two similar Advanced Magnetics
products are on the market, one for liver lesions and one for bowel
problems, and more are in the pipeline.
"Until now Advanced Magnetics had been licensing their products,
but now they have a product that could be used by 800,000 people a
year," says Krawiec, noting that to license such a revenue
producer would be like giving away the store. "We have a sales
force synergistic to what they are doing."
Advanced Magnetics has 35 employees, most at a manufacturing facility
in Cambridge, but 10 are at the clinical and regulatory affairs office
at the Carnegie Center.
CN 5308, Princeton 08543-5308. H. Joseph Reiser, president and CEO.
609-987-8200; fax, 609-750-8130. Home page: www.cytogen.com.
Suite 202, Princeton 08540-6232. Leonard M. Baum, senior vice
president.
609-520-8505; fax, 609-520-0620.
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