10 Research Unit Acquired: Neocrin Co., the...

10 Research Unit Acquired: Neocrin Co., the Irvine biotechnology firm that is developing an artificial pancreas for treating diabetics, has signed an agreement to acquire the diabetes research unit of a New England firm.

Under the agreement, Neocrin will receive rights to technology and properties owned by CytoTherapeutics Inc. of Providence, R.I. The technology includes the rights to a Washington University patent that isolates islets, small, insulin-producing cells that would be enclosed in the artificial pancreas. It also gains the right to use Washington University laboratories for its continuing research and development of an artificial pancreas.

For its part, CytoTherapeutics gets a 10% stake in privately held Neocrin, which was formed in 1992 (it was incorporated in September, 1993) by a $10-million partnership between Baxter Healthcare Corp. of Illinois and TranCel Corp. of Irvine.