Cytori Says Lawsuit Doesn't Hamper Business

San Diego Business Journal, June 30, 2008 by Heather Chambers

Cytori Says Lawsuit Doesn't Hamper Business: A major court ruling in favor of privately held stem cell company Artecel Inc. affirmed the company's rights to stem cells derived from fat tissue, a method also employed by Cytori Therapeutics.

Artecel is a privately held biotech company involved in stem cell banking and developing therapies and tools around fat-derived stem cells. Artecel is owned by Toucan Capital, an investment fund in Maryland.

In the case of University of Pittsburgh of the Commonwealth System of Higher Education v. Marc Hedrick, et al., the U.S. District Court for the Central District of California determined UC doctors who claimed invention on fat-derived stem cells were preceded by doctors at the University of Pittsburgh.

Cytori licenses its technologies from the University of California; Artecel claims rights from the University of Pittsburgh.

Cytori, which developed a system capable of separating a person's own adult and regenerative stem cells from fat tissue to be used during surgical procedures, said the ruling does not affect commercialization of its Celution System because it obtained a separate patent on it, although the company in a statement said it could appeal the ruling.

The patent protects the company's right to produce and sell technology that processes tissues to obtain a diverse mix of cells. Cytori is seeking regulatory approval for the device in the United States.

The court's decision ends more than three years of litigation and follows two interim court rulings in February and August of last year, both in favor of the University of Pittsburgh.

Send news about biotechnology to Heather Chambers, hchambers@sdbj.com.