Cambrex to buy US skin specialists Cutanogen

New Jersey, USA-based Cambrex Bioscience, a specialist developer of drug discovery solutions, says it has entered into an agreement to purchase Cutanogen, a privately-held biotechnology company, which develops products for the treatment of burns.

The acquisition will cost an initial $1.5 million plus additional payments of $4.8 million subject to the achievement of certain regulatory and commercial milestones. The transaction is projected to be dilutive by approximately $0.15 per share in 2006 due to purchase price payments. Cambrex added that it plans to begin trials of Cutanogen's PermaDerm (cultured skin), which has been given a Humanitarian Use Designation by the Food and Drug administration, following completion in 2006.