Creative BioMolecules Closes Biogen Renal Deal; Receives $28 Million Payment

Hopkinton, MA, January 6, 1997--Creative BioMolecules (Nasdaq: CBMI) today announced the closing of the collaborative agreement with Biogen (Nasdaq: BGEN) on the development of novel therapeutics for the treatment of renal disorders. Creative received $28 million as an initial payment at the closing. The payment includes a $10 million technology access fee and the purchase of $18 million in equity at $11.67 per share, a premium over market. Payment was made after the Federal Trade Commission granted the companies' joint request for early termination of the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

The focus of the alliance is on advancing the development of Creative's morphogenic protein, OP-1, for the treatment of acute and chronic renal failure.

Biogen's investment could total over $122.5 million in equity, technology access fees, research support, development milestones and a line of credit. Under the terms of the agreement, Biogen will fund the renal program and will have responsibility for preclinical and clinical development of OP-1, as well as for commercial manufacturing. Biogen receives exclusive worldwide rights to market and sell OP-1 products developed through the collaboration for the treatment of renal disease.

The statements in this news release that are not historical facts include forward-looking statements that involve risks and uncertainties. Factors which could cause actual results to differ from the Company’s expectations include, without limitation, the achievement of product development milestones by the Company, the impact of competitive products, the timely receipt of regulatory clearances required for clinical testing, manufacturing and marketing of products and the other risks and uncertainties detailed from time to time in the Company’s periodic reports.

Creative BioMolecules is a discovery and development company focused on proprietary protein-based therapeutics for human tissue regeneration and restoration. The Company’s therapeutics are based on proteins that act as signals in initiating and regulating the cellular events involved in cell and tissue formation.

NOTE: Creative BioMolecules, Inc. makes available its latest news releases on the Internet at http://www.prnewswire.com or by facsimile by calling Fax On Demand at 1-800-758-5804, extension 212213.

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For additional information on this news release, please contact the Company.


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