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  Velcura’s 
        Technologies: Velcura can grow human bone outside the body (ex 
        vivo) using a rapid (7 – 10 days) and reliable method (Figure 1). 
        From this, we discover therapeutic targets for bone disorders such as 
        osteoporosis, bone cancer, bone fractures, and other diseases of bone. 
        Velcura applies rapid molecular and biological bone assays, and bioinformatic 
        analysis to the systematic discovery of the genes, biological pathways, 
        and drug candidates that accelerate bone formation. With this approach, 
        Velcura can rapidly identify and validate new therapeutic targets. 
 
  Ex 
        Vivo Bone Formation. Our ability to grow human bone cells allows 
        the careful dissection of the molecular control of bone formation. Both 
        bone precursor cells, and mature bone cells are isolated from human bone, 
        and used in bone-forming assays, bone cell functional assays, and gene 
        and proteinexpression assays. Thus, the effects of small molecules, biologicals, 
        or genes are readily and rapidly determined. 
 
  Our 
        recent advances in technology have made Velcura the industry leader in 
        discovering molecular targets for stimulating bone formation. This is 
        due to our strong patent position that makes us the sole source for the 
        technology of forming human bone outside the body. Velcura thus holds 
        the key to efficient discovery of bone growth-promoting therapeutics:
 
         The only in vitro, cell-based bone formation assay for human 
          bone growth-promoting substances. Facilitation of both drug discovery and identification of critical 
          molecular targets for bone disease. Multiple patents with broad claims; exclusively licensed to Velcura. 
  Human 
        Bone Therapy System (HBTS). Velcura has developed a high content, 
        cell-based screening assay system to rapidly identify bone-active molecules, 
        using human bone cells as a target. As well, a number of reproducible, 
        highly sensitive assays are used to determine whether bone-active molecules 
        affect bone cell enzymatic expression, maturational characteristics, and 
        proliferation capacity. Velcura has pioneered the use of fluorescence-activated 
        cell sorting as a means for multi-parameter analysis of bone cells in 
        this regard. 
 
  Bone 
        Gene Expression Analysis. The company is constructing and populating 
        a number of databases that collect and track information on the changes 
        in gene expression during bone formation. These databases include information 
        on genetic alterations occurring in normal bone formation, bone injury 
        and repair, and a number of bone diseases including bone cancer, osteoporosis, 
        and Paget's Disease. Each database will consist of multiple individual 
        gene expression profiles for each medical condition, thus allowing simultaneous 
        identification of individual variations as well as composites. As part 
        of this program, Velcura is developing an OsteoChip™ (expected completion 
        1st quarter 2004) that contains all genes differentially modulated during 
        human bone formation. This approach will rapidly accelerate the drug discovery 
        process for our strategic partners and us. 
 
  Velcura’s 
        current data indicate that there are 1100 differentially regulated genes 
        identified as being significantly modulated during human bone formation 
        (Figure 2). That is, genes that show average to low expression in control 
        cells are increased in the induced cells. Further Bioinformatic analysis 
        identified a number highly-modulated genes of interest in bone formation, 
        covering a wide array of physiologically relevant proteins (Figure 3.), 
        including transcription factors, Homeobox genes, Helix-loop-helix proteins, 
        etc. These genes are now being evaluated as potential therapeutics targets 
        that are important to bone formation. 
 
  Bone 
        Protein Expression Analysis. In order to confirm and extend its 
        gene expression analysis Velcura has developed a system to evaluate protein 
        changes during human bone formation. This field is referred to as Proteomics 
        - the analysis of global protein changes in a cell. Importantly, we are 
        using a combination of 2-dimensional gel electrophoresis (2-DGE) and mass-spectrometry 
        to identify differentially modulated proteins (Figure 4). We have further 
        reduced the complexity of this system by fractionating human bone cells 
        into membrane, cytoplasm, and nuclear components. Currently, Velcura is 
        evaluating nuclear fractions of stimulated human bone cells, and has detected 
        a number of signaling proteins that are up-regulated, as well as a number 
        that are new or newly translocated in the nucleus of cells undergoing 
        bone formation. Next, these protein-spots are analyzed by mass-spectrometry. 
 
  High-Throughput Bioinformatics. Velcura's Bioinformatics 
        Program is developing sophisticated computer analysis tools and laboratory 
        information management programs to accelerate our development times. In 
        connection with our gene and protein analyses, our bioinformatics capabilities 
        allow a rapid, high-content understanding of bone formation at the molecular 
        level.
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