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                                                                    EXHIBIT 10.8
                                     STRYKER
                          IRREVOCABLE LICENSE AGREEMENT

     This Agreement, dated November 20, 1998 by and between Creative
BioMolecules, Inc., a Delaware corporation with its principal office at 35 South
Street, Hopkinton, Massachusetts 01748 ("CBM") and Stryker Corporation, a
Michigan corporation with its corporate office at 2725 Fairfield Road, P.O. Box
4085, Kalamazoo, Michigan 49003-4085 ("Stryker").

     WHEREAS, the patents and patent applications listed on Schedule 1 attached
hereto are owned by CBM; and

     WHEREAS, it is the intention of CBM, by this Irrevocable License Agreement,
to grant to Stryker an exclusive license under the Patent Rights Licensed to
Stryker in the Stryker Field (as such terms are defined herein);

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, hereby agree as
follows:

     1.   Definitions. As used herein, the following words shall have the
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following meanings:

          a. "Patent Rights Licensed to Stryker" shall mean (i) the patents and
     applications listed on Schedule 1 attached hereto, (ii) any patent
     applications and patents deemed to be Patent Rights Licensed to Stryker
     pursuant to Section 4.6 of the Master Agreement, and (iii) all worldwide
     counterparts and registrations, continuations, divisions, reissues,
     extensions or supplementary protection certificates, continuations-in-part
     or additions (but only to the extent such continuations-in-part or
     additions claim inventions disclosed as required by 35 U.S.C. (S)112 (CIPs)
     or the applicable laws (additions) in the parent application therefor
     listed in Schedule 1) with respect thereto, and all patents issuing
     therefrom.
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          b. "Biological Materials" shall mean any biological materials, assays,
     substances or reagents, including without limitation transformed or
     transfected cells (including any cell expressing an OP Product or an
     analog, mutation or heterodimer thereof conceived, made, developed or
     reduced to practice as part of the Research Project (as defined in the
     Master Agreement)), cell lines, DNA sequences, vectors, host cells,
     proteins, antibodies and any fragments or subcellular components thereof.

          c.  "Bone Diseases" shall mean Osteoporosis, Osteomalacia and Paget's
     Disease.

          d. "OP" shall mean proteins (or the active sites thereof) or
     polypeptides or combinations of proteins and polypeptides which produce an
     osteogenic effect.

          e. "OP Products" shall mean OP and polyclonal or monoclonal antibodies
     of OP and specific inhibitors or inhibitory activities of the osteogenic
     effect of OP, which inhibitors or inhibitory activities are found and
     identified as such in the course of the Research Project (as defined in the
     Second Amended and Restated Research, Development and Supply Agreement,
     dated May 17, 1991, between CBM and Stryker, as amended).

          f.  "OP Devices" shall mean the combination of OP Products with
     suitably biocompatible and biodegradable carriers.

          g. "Bone Disease Field" shall mean the prevention or treatment of the
     Bone Diseases other than (i) by the local application of OP Products and OP
     Devices in an insoluble formulation directly on bone or joint tissue for
     local, as opposed to general or systemic, effect and (ii) the treatment of
     fractures regardless of whether they result from a Bone Disease.

          h. "Creative Manufacturing Know-How" means all inventions, know-how,
     Biological Materials (including, without limitation, any cell line
     expressing an analog of OP-1 conceived, made, developed or reduced to
     practice as part of the Current Scope(s)

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     of Work conducted pursuant to Section 4.2 of the Master Agreement),
     designs, trade secrets, copyrights, processes, formulas, techniques,
     discoveries, ideas and the like that, as of the Closing Date (as defined in
     the Master Agreement), are owned by CBM or as to which CBM has acquired
     rights which are licensable hereunder, that are necessary or useful in the
     manufacture OP Products or OP Devices.

          i. "Stryker Field" shall mean the field of (i) treatment, repair or
     replacement of bone and joint tissue, including, without limitation,
     meniscus and articular cartilage and ligaments and tendons, but excluding
     the Bone Disease Field, and (ii) treatment, repair or replacement of the
     tooth, dentin, alveolar bone, cementum, enamel, gingiva (to the extent, but
     only to the extent, the gingiva functions as part of the apparatus holding
     the tooth to the jaw) and/or periodontal ligament, but excluding the
     treatment of Oral Ulcerations (as defined below) or any other disease or
     disorder of the tissues of the mouth not involving the tooth, dentin, bone
     (including alveolar bone), cementum, enamel, gingiva (to the extent, but
     only to the extent, the gingiva functions as part of the apparatus holding
     the tooth to the jaw), ligament (including the periodontal ligament),
     tendon and/or cartilage.

          As used herein, "Oral Ulcerations" means the formation of lesions on
     the surface of skin lining the oral cavity caused by loss of tissue but
     does not include Periodontal Disease (as defined below) or any other
     disease or disorder involving the tooth, dentin, bone (including alveolar
     bone), cementum, enamel, gingiva (to the extent, but only to the extent,
     the gingiva functions as part of the apparatus holding the tooth to the
     jaw), ligament (including the periodontal ligament), tendon and/or
     cartilage.

          As used herein, "Periodontal Disease" means degeneration of the
     apparatus holding the tooth to the jaw involving damage to any or all of
     the gingiva (to the extent, but only to the extent, the gingiva functions
     as part of the apparatus holding the tooth to the jaw), alveolar bone,
     cementum, enamel and periodontal ligament.

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<PAGE>

          j.  "Master Agreement" means the Master Restructuring Agreement dated
     October 15, 1998 between Stryker and CBM.

     2. Grant of Exclusive License. CBM hereby grants to Stryker an irrevocable,
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exclusive, worldwide license, with the unrestricted right to grant sublicenses,
to all of the Patent Rights Licensed to Stryker solely for the manufacture, use,
importation and sale of OP Products and OP Devices in the Stryker Field, which
grant shall be exclusive, even as to CBM, with respect to the Stryker Field, it
being understood that CBM retains the exclusive right to manufacture, use,
import and sell OP Products and OP Devices for use in all fields other than the
Stryker Field. Such license shall not be terminable by CBM or any successor,
assign or any party claiming through CBM under any circumstances or for any
reason (including, without limitation, any breach or default under any other
agreement between Stryker and CBM).

     3. Grant of Non-Exclusive License. CBM hereby grants to Stryker an
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irrevocable, non-exclusive, worldwide license, with the unrestricted right to
grant sublicenses under all Creative Manufacturing Know-How, solely for use (a)
in the manufacture of OP Products and OP Devices for use in the Stryker Field,
(b) in the manufacture of OP Products and OP Devices for Creative and (c) in the
manufacture of proteins or polypeptides (or combinations of proteins or
polypeptides) other than OP.

     4. Retained Rights. Notwithstanding Section 2, CBM hereby retains for
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itself the right to use OP Products and OP Devices as research and development
tools for the development of other products and devices for use in the Creative
Field. Nothing in the license granted to Stryker hereunder shall preclude CBM
from engaging in the development, production and sale of products and devices in
the Creative Field.

     5.   Recording of License.  CBM shall record this license in the United
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States Patent and Trademark Office and such other foreign patent offices as
Stryker shall determine to be appropriate.

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     6.   Miscellaneous.
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          a. This Agreement may only be amended by a written instrument signed
     by both parties, which makes specific reference to this Agreement.

          b. Stryker may assign this Agreement without the consent of CBM. This
     Agreement shall be binding upon and shall inure to the benefit of CBM and
     Stryker and their respective successors and assigns.

          c.  This Agreement is governed by the laws of the State of Delaware.

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as
of the date first above written.

CREATIVE BIOMOLECULES, INC.              STRYKER CORPORATION


By: /s/ Michael Tarnow                   By: /s/ John S. Brown
    ----------------------------             ------------------------------
Title: President and CEO                 Title: Chairman, President and CEO
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