Orthomimetics

This acquisition fits with TiGenix’ growth strategy of becoming a leading player in the promising and fast-growing field of regenerative medicine.

Orthomimetics was founded in 2005 as a spin-out from the University of Cambridge and the Massachusetts Institute of Technology (MIT). Its products are based on a leading collagen biomaterials platform for the production of scaffolds for cartilage, meniscus, ligament and tendon repair.

Orthomimetics’ flagship product, Chondromimetic™, is an off-the-shelf, resorbable implant for the minimally invasive repair of small osteochondral (cartilage and underlying bone) defects. The product has received European market approval (CE-Mark approval) and is close to entering the European market. Small osteochondral defects represent an important medical need that is currently not covered by TiGenix’ products. Chondromimetic™ forms an excellent fit with TiGenix’ lead product, ChondroCelect®, since both products target the same customer base in complementary indications.

The acquisition of Orthomimetics also broadens TiGenix biomaterials expertise. Orthomimetics’ technological advantage lies in the patent-protected ability to combine three natural biomaterials, collagen, glycosaminoglycans and calcium phosphate, into bioresorbable tissue regeneration scaffolds. The combination of Orthomimetics’ biomaterials know-how with TiGenix’ cell-based platform allows TiGenix to broaden its development focus towards regenerative medicine products for meniscus, tendon, and ligaments.

Under the terms of the acquisition, TiGenix will issue about 3.7 million new shares as consideration for the purchase of all outstanding shares of Orthomimetics. This values Orthomimetics at EUR 16 million (USD 23.8 million) on a debt and cash free basis. The new shares will be admitted to trading on the NYSE Euronext Brussels. The Orthomimetics shareholders agreed to a lock-up period until 31 October 2010 that could be lifted earlier with the prior written consent of TiGenix.

“This consolidation represents a natural extension of our core business strategy to provide the best regenerative medicine solutions to orthopaedic surgeons worldwide. The synergies between Chondromimetic™ and ChondroCelect® allow us to leverage our existing European infrastructure and commercial capabilities, and provide the opportunity to increase our near-term revenue growth with limited impact on our cash needs” comments Gil Beyen, CEO of TiGenix “The combination of these advantages and our expertise in developing cell-based therapeutic products creates a unique platform from which innovative future combination products can be developed.”

Commenting on the strategic fit between the companies, Andrew Lynn, CEO of Orthomimetics said: “The ability to equip a single sales force with two approved products that have the same point of sale is a clear and immediate commercial benefit.” Lynn, who will assume lead business-development responsibilities at TiGenix as Chief Business Officer, went on to add: “By bringing together key expertise and market-ready products based on cells, biomaterials and minimally invasive delivery systems, TiGenix has put itself in a strong position to drive the market uptake of regenerative medical treatments in orthopaedics. It is an honour for all of us at Orthomimetics to become part of this innovative and exciting effort.”

CONFERENCE CALL
Today at 11:00 Central European Time (10:00 am GMT), the management of TiGenix will conduct a conference call to give details on the acquisition of Orthomimetics and its growth strategy.

To participate in the conference call, please register at:
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=197329&Conf=169538

Following the management presentation, the participants will be able to ask questions.This press release and the presentation will be made available in the News section on our website.

The conference call will be recorded. A replay will be available shortly after the conference call and will be accessible via:
Access Number: +32 2 2901705
Access code: 851514

*******
For more information, please contact:
Gil Beyen
Chief Executive Officer
Kris Motmans
Corporate Communications
T: +32 16 39 60 60
Investor@tigenix.com
TiGenix NV • Romeinse straat 12 bus 2, 3001 Leuven, Belgium • 0471.340.123 RPR Leuven • tel +32 (16) 39 60 60

About TiGenix
Based in Leuven, Belgium, TiGenix NV (NYSE Euronext Brussels: TIG) is a biomedical company that focuses on ‘Regenerating Motion’. The company is exploiting the power of Regenerative Medicine to develop durable treatments, validated through controlled clinical trials, for damaged and osteoarthritic
joints.

TiGenix is developing a portfolio of products that address specific musculoskeletal problems. The lead indication among these is cartilage damage, which is a debilitating affliction affecting the mobility and functioning of patients. Western societies are characterised by ageing populations that place an increasing emphasis on high quality of life and life-long mobility, and, as such, cartilage problems represent a large and growing unmet medical need. Current therapies do not provide satisfying, longterm durable repair and TiGenix therefore believes there is a need for more effective treatments for cartilage damage.

About ChondroCelect®
ChondroCelect®, the company’s lead product for cartilage regeneration in the knee, is the first cellbased product that successfully completed the entire development track from research, over clinical development to central European registration as a medicinal product. ChondroCelect® consists of characterised cultured chondrocytes derived from the patient’s own cartilage and is used for autologous chondrocyte implantation (ACI), a surgical procedure to treat cartilage defects. Cartilage defects of the knee are very common, and the spontaneous healing capacity of cartilage is limited. On October 5, 2009 ChondroCelect® received European marketing authorisation as the first Advanced Therapy Medicinal Product, indicated for repair of single symptomatic cartilage defects of the femoral condyle of the knee (International Cartilage Repair Society [ICRS] grade III or IV) in adults.

About Orthomimetics
Orthomimetics Limited is a medical technology company that specializes in the design, development, and manufacture of regenerative medical implants and minimally invasive delivery systems for the treatment of sports injuries, trauma and other conditions that affect knees, ankles and other articular joints. Formed in 2005 as the first spin-out venture from the Cambridge-MIT Institute, the company is bringing to market a line of medical device products designed to improve the treatment outcome of
first-line surgical procedures for the regenerative repair of articular cartilage, meniscus, ligament and tendon injuries using natural biomaterials. These products are engineered to be compatible with
existing surgical techniques and to work in combination with emerging cell- and biologics-based products. The company is supported by blue-chip investors including Schroders Investment Management, Sloane Robinson Private Equity, Goldman Sachs and Oxford Capital Partners.

About Chondromimetic™
Chondromimetic is a porous, resorbable implant which is designed to support the regenerative repair of damaged joint surfaces and bony defects caused by trauma or disease. Chondromimetic contains three readily-absorbed, non-synthetic biomaterials: collagen, glycosaminoglycan and calcium phosphate in a dual-layer porous implant. The product allows pre-hydration with sterile fluids and autologous blood products and provides optimum environmental conditions for cell infiltration and tissue regeneration via its unique materials composition and scaffold architecture. The product is  supplied sterile and ready to use, and is compatible with open and minimally invasive implantation
methods. The product received CE-mark approval for the treatment of small chondral and subchondral lesions.

Forward-looking information
This document contains forward-looking statements and estimates with respect to the anticipated future performance of TiGenix and the market in which it operates. Certain of these statements, forecasts and estimates can be recognised by the use of words such as, without limitation,“believes”, “anticipates”, “expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will” and “continue” and similar expressions. They include all matters that are not historical facts. Such statements, forecasts and estimates are based on various assumptions and assessments of known and unknown
risks, uncertainties and other factors, which were deemed reasonable when made but may or may not prove to be correct. Actual events are difficult to predict and may depend upon factors that are beyond the Company's control. Therefore, actual results, the financial condition, performance or achievements of TiGenix, or industry results, may turn out to be materially different from any future results, performance or achievements expressed or implied by such statements, forecasts and
estimates. Given these uncertainties, no representations are made as to the accuracy or fairness of such forward-looking statements, forecasts and estimates. Furthermore, forward-looking statements, forecasts and estimates only speak as of the date of the publication of this document. TiGenix disclaims any obligation to update any such forward-looking statement, forecast or estimates to reflect any change in the Company’s expectations with regard thereto, or any change in events, conditions or circumstances on which any such statement, forecast or estimate is based, except to the extent required by Belgian law.