Ann Arbor, MICH., July 30, 2004 -- Velcura Therapeutics™, Inc. recently was awarded $1,452,000 to study the mechanisms by which primitive cells develop into mature bone-forming cells. Velcura investigates how human bone cells function as part of its work developing novel therapies for bone diseases such as osteoporosis. The grant was awarded by the National Institute of Diabetes & Digestive & Kidney Diseases (NIDDK) based on NIDDK’s interests in endocrinology, metabolic diseases, and stem cells.

"This grant will allow Velcura Therapeutics to extend our research program to the earliest cells that can develop into mature, bone-forming cells known as osteoblasts," said President and CEO Michael W. Long, Ph.D. "From this research, Velcura will be able to discover the molecules and cellular pathways involved in this process."

Velcura’s grant investigates the control of stem cells found in the bone marrow of children and adults (as opposed to embryonic stem cells) and their relationship to early and mature bone cells. Bone marrow stem cells are known to produce blood cells. However, recent evidence points to a capacity for marrow-derived stem cells to produce other cell-lineages such as bone. Indeed, bone marrow transplants have been used to treat children with Osteogenesis Imperfecta, also known as brittle bone disease.

"An important aspect of these investigations is to improve our understanding of stem cell function," Dr. Long said. "This requires careful studies of bone marrow stem cells as well as embryonic stem cells, as the latter are the gold standard for developmental cell biology studies." Although Velcura does not work on embryonic stem cells, Dr. Long explained that the company hopes its investigations will provide important information on how to guide primitive cells into becoming bone cells, identifying therapeutic targets along the way.

One eventual goal, although not part of this grant’s research, is to design therapies that recruit more cells into the bone cell lineage thus providing an endogenous increased capacity to make new bone.

About Velcura Therapeutics™, Inc.

Velcura Therapeutics™, Inc. focuses on discovering novel therapies for osteoporosis and other bone diseases utilizing its patented technology and ability to rapidly isolate and analyze human bone cells. Founded in 2001, the Ann Arbor company received $3.3 million in funding from the Michigan Economic Development Corporation’s Life Science Corridor in 2002 and a $224,000 Phase 1 Small Business Innovation Research grant from the NIH National Institute on Aging in 2003. In addition to its own drug discovery programs, Velcura Therapeutics partners with organizations interested in its research and drug discovery programs. Recently, Velcura developed the OsteoChipTM, a custom Affymetrix GeneChip® DNA microarray that includes genes that Velcura’s scientists and others identified as being related to bone growth. For more information, visit www.velcura.comMedia contact: Cindy Orlandi, APR, ABC, 734.250.2619, 734.973.1000 or corlandi@velcura.com