Select and Cytomatrix end JV

Select Therapeutics and Cytomatrix say they have agreed to terminatetheir joint venture, Cell Science Therapeutics, in the wake of what they say have been "the extremely difficult economic circumstances since September of this year."

The companies issued a statement saying they believe that shareholder value may be best protected by dividing CST development activities into separate cell therapeutic and drug and vaccine companies, which can each seek appropriate financing. Both companies plan to cooperate in areas of mutual interest, they said, and may enter into "appropriate collaborative agreements in the future as opportunities arise."

Provisions of the restructuring include the return of intellectual property to Select from the JV, which will still be operated by Cytomatrix as a wholly-owned development organization, and the assignment by Select of its 50% stake in CST to Cytomatrix. The firms also noted that they have terminated their anticipated merger agreement with no further obligation to each other.