Pfizer Inc (NEW YORK , NY) and Scil Technology GmbH (MARTINSRIED, Germany), a privately-held biopharmaceutical development company focusing on dental and orthopaedic tissue regeneration with a particular emphasis on bone and cartilage repair, have signed a worldwide license agreement for Scil Technology's cartilage specific growth factor CD-RAP (cartilage-derived retinoic-acid-sensitive protein). CR-RAP is an 11kd secreted protein shown to play a crucial role in cartilage formation during embryonic development and in the matrix stimulation of chondrocytes in adult animals.

Under this agreement, Pfizer will obtain an exclusive license to develop and commercialize CD-RAP. In addition to receiving royalties on the sale of any commercial products, Scil is eligible for upfront and milestone payments of ~$250 million depending on the achievement of various development and regulatory milestones.

CD-RAP appears to play a role in influencing the differentiation of mesenchymal stem cells into chondrocytes. Because CD-RAP is mainly produced in young and proliferating chondrocytes, it is believed that the level of the protein in synovial fluid reflects remodeling of articular cartilage and may be used as a marker to estimate objectively the restorative reaction of chondrocytes. CD-RAP has been shown to stimulate cartilage synthesis via in vitro studies with chondrocytes obtained from patients suffering from osteoarthritis (OA). These properties make recombinant human (rh) CD-RAP a promising candidate for cartilage regeneration in indications such as chondral defects and OA.

Scil's therapeutic candidates are based on rh growth factors, and are combined with biodegradable biomaterials to generate local application forms. Scil's orthopaedic product pipeline includes products for the treatment of traumatic lesions of bone and cartilage, and OA. Scil owns the worldwide patents concerning substance and production of rhCD-RAP, the medical use of rhCD-RAP for cartilage repair, and use of rhCD-RAP as diagnostic tool for cartilage diseases.