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                                                                   EXHIBIT 10.11

CREATIVE BIOMOLECULES, INC. HAS OMITTED FROM THIS EXHIBIT 10.11 PORTIONS OF THE
AGREEMENT FOR WHICH CREATIVE BIOMOLECULES, INC. HAS REQUESTED CONFIDENTIAL
TREATMENT FROM THE SECURITIES AND EXCHANGE COMMISSION. THE PORTIONS OF THE
AGREEMENT FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED ARE MARKED WITH
AN ASTERISK AND SUCH CONFIDENTIAL PORTIONS HAVE BEEN FILED SEPERATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.


                             AMENDMENT AGREEMENT

            This agreement by and between CREATIVE BIOMOLECULES, INC., a
Delaware corporation with its office and place of business at 45 South Street,
Hopkinton, Massachusetts 01748 ("CBM"), and STRYKER CORPORATION, a Michigan
corporation with its office and place of business at 2725 Fairfield Road, P.O.
Box 4085, Kalamazoo, Michigan 49003-4085 ("Stryker").

            WHEREAS, CBM and Stryker are parties to that certain Second Amended
and Restated Research, Development and Supply Agreement, dated as of May 17,
1991, as amended to the date hereof (the "Agreement"), concerning research and
development on OP (capitalized terms used but not defined herein shall have the
meaning provided therefor in the Agreement); and

            WHEREAS, CBM and Stryker desire to amend the Agreement in certain
respects as more fully set forth herein, to evidence their agreement that the OP
Field includes the Dental Field (as defined below) and to set forth the terms
and conditions relating to the license by CBM to Stryker of CBM's rights with
respect to certain intellectual property and related commercial rights related
to the Dental Field generally and to certain programs undertaken by CBM in the
Dental Field;

            NOW, THEREFORE, in consideration of the foregoing and the agreements
set forth herein and in the Agreement, the parties
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hereto agree that, effective as of the date hereof, the provisions of the
Agreement shall be amended as provided herein.

            1. The fifth WHEREAS clause of the Agreement is hereby amended by
deleting it in its entirety and replacing it with the following:

            WHEREAS, the parties have agreed that Stryker shall own all right,
      title and interest in and to the OP Products and OP Devices which have
      resulted from or may be further developed by CBM, its agents or
      independent contractors as a result of undertaking the Prior Agreement and
      this Agreement or performing the tasks performed thereunder or to be
      performed hereunder (the "Research Project"); that Stryker shall be the
      exclusive licensee of the Licensed Dental Intellectual Property (as such
      term is defined in Section 1.7A(iii) of this Agreement) as provided in
      Section 1.7 of this Agreement; and that, pursuant to the terms of that
      certain Irrevocable License Agreement, dated as of May 17, 1991 (the
      "License"), a copy of which is attached hereto as Exhibit 1, Stryker shall
      grant to CBM an irrevocable, exclusive, worldwide license to the Present
      Patents and Applications and Future Patents and Applications (as such
      terms are defined in Section 1.4B of this Agreement) for all uses and
      applications of all inventions claimed therein, except for the
      manufacture, use and sale of OP Products and OP Devices for use in the
      field of treatment, repair or


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      replacement of bone and joint tissue including, without limitation,
      meniscus and articular cartilage and ligaments and tendons (the "OP
      Field") other than the portion of the OP Field consisting of prevention or
      treatment of Osteoporosis, Osteomalacia and Paget's Disease 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 Osteoporosis, Osteomalacia and Paget's Disease
      (the "Bone Disease Field"), it being expressly understood and agreed that
      the OP Field as defined herein includes the Dental Field (as such term is
      defined in Section 1.7A(i) of this Agreement);

            2. Paragraph B of Section 1.4 of the Agreement is hereby amended by
deleting it in its entirety and replacing it with the following:

            B. Pursuant to the Assignment, dated May 17, 1991 (the "Patent
      Assignment"), a copy of which is attached hereto as Exhibit 2, CBM has
      assigned to Stryker its entire right, title and interest in the inventions
      and improvements disclosed in the U.S., foreign and PCT applications and
      patents issuing therefrom that are listed in Schedule A thereto (the
      "Present Patents and Applications"). CBM represents to Stryker that the
      Present Patents and


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      Applications and the patents and applications that have been prosecuted in
      Stryker's name during the period from May 17, 1991 to October 31, 1996 as
      Future Patents and Applications (as defined below), a list of which is set
      forth in Schedule I hereto, constitute all U.S., foreign and PCT
      applications and patents in which CBM ever had any right, title and
      interest that disclose inventions and improvements related to OP Products
      and OP Devices conceived, made, developed or reduced to practice as part
      of the Research Project by CBM or any of its personnel or by any third
      party under contract to CBM. CBM agrees that all future patent
      applications and patents that disclose inventions and improvements related
      to OP Products and OP Devices that are conceived, made, developed or
      reduced to practice as part of the Research Project by CBM or any of its
      personnel or by any third party under contract to CBM and all
      continuations, continuations in part, divisions, reissues, additions or
      extensions and other patents or applications based in whole or in part on
      such patents and applications (the "Future Patents and Applications") in
      which CBM has any right, title or interest will be prosecuted in Stryker's
      name at Stryker's expense. CBM will prepare and file the applications for
      the Future Patents and Applications at no expense to Stryker but only
      after review thereof by Stryker and with Stryker's concurrence as to the
      form thereof. Issues that arise in


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      the course of the prosecution of the Present Patents and Applications and
      Future Patents and Applications will be jointly decided by Stryker and
      CBM.

            3. Paragraph A of Section 1.5 of the Agreement is hereby amended by
adding a new sentence at the end thereof that shall read as follows:

      Notwithstanding anything in the foregoing to the contrary, no payments
      shall be required to be made by CBM to Stryker in respect of the first *
      of Royalties, calculated in the manner provided herein, that would
      otherwise be required to be paid hereunder.

            4. The first sentence of paragraph A of Section 1.6 of this
Agreement is hereby amended to read in its entirety as follows:

      Stryker shall pay to CBM, in U.S. dollars, quarterly royalties equal to *
      of Stryker's Net Sales of OP Products and OP Devices for a period of *
      years beginning, in the case of OP Products or OP Devices with application
      in the OP Field other than the Dental Field, on the date of first
      commercial sale of any OP Product or OP Device with such an application
      and, in the case of OP Products or OP Devices with application in the
      Dental Field, on the date of first commercial sale of any OP Product or OP
      Device with such an application.


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            5. Article I of the Agreement is hereby amended to add at the end
thereof a new Section 1.7, which shall read in its entirety as follows:

            1.7 Agreements Relating to the Dental Field.

            A. For purposes of this Agreement, the following terms shall have
      the meanings set forth below:

              (i) "Dental Field" shall mean the 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 in clause (v)
      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;

             (ii) "Know-How" shall mean all inventions, discoveries,
      confidential or proprietary ideas, concepts and information, research
      data, lab notebooks, records relating to preclinical and clinical trials,
      manufacturing specifications, methods or processes, formulas, designs,
      Master Files, IDE and other submissions to the FDA and other authorities
      in connection with regulatory clearances,


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      product development data and other trade secrets, other than the Licensed
      Patent Rights (as such term is defined in Section 1.7A(iv) of this
      Agreement), related to the development of OP Products and OP Devices with
      applications in the Dental Field;

            (iii) "Licensed Dental Intellectual Property" shall mean the
      Know-How and the Licensed Patent Rights;

             (iv) "Licensed Patent Rights" shall mean CBM's entire right, title
      and interest for the United States and all foreign countries in all
      inventions and improvements disclosed in the US, foreign and PCT
      applications and patents issuing therefrom that are listed on Schedule II
      hereto and in all continuations, continuations in part, divisions,
      reissues, additions or extensions thereof and in the future patent
      applications and patents referred to in the last sentence of Section 1.7B
      of this Agreement;

              (v) "Oral Ulcerations" shall mean 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 in clause (vi) 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; and


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             (vi) "Periodontal Disease" shall mean 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.

            B. CBM hereby grants to Stryker an irrevocable (except as set forth
      in Section 3.2), exclusive, worldwide license in the Dental Field to use
      and enjoy the Licensed Dental Intellectual Property and related commercial
      rights that CBM now has or hereafter acquires arising out of research and
      development programs undertaken by CBM, or by third parties and in which
      CBM has or acquires any rights, to develop OP Products and OP Devices with
      applications in the Dental Field, including, but not limited to, OP
      Products and OP Devices for dentin regeneration and the treatment of
      periodontal disease and tooth sensitivity. The license granted hereunder
      shall include the right to sublicense to third parties not affiliated with
      Stryker. CBM represents to Stryker that, as of the date hereof, the
      Licensed Patent Rights constitute all US, foreign and PCT applications and
      patents in which CBM ever had any right, title and interest that disclose
      inventions and improvements related to OP Products and OP Devices with
      applications in the Dental Field other than the Present Patents and
      Applications and


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      the Future Patents and Applications to the extent applicable to the Dental
      Field and that the inventions and improvements disclosed in the Licensed
      Patent Rights and the other Licensed Dental Intellectual Property were not
      conceived, made, developed or reduced to practice as part of the Research
      Project. CBM further agrees that all future patent applications and
      patents in which it has or acquires any rights that disclose inventions or
      improvements related to OP Products and OP Devices that were not
      conceived, made, developed or reduced to practice as part of the Research
      Project but have applications in the Dental Field as well as applications
      outside the Dental Field shall be included in Licensed Patent Rights.

            C. Stryker is hereby given the first right during the term of this
      Agreement to sue infringers in the Dental Field of the Licensed Dental
      Intellectual Property and to collect and retain all profits and/or damages
      or amounts by way of settlement that may be recovered as a result thereof,
      whether for the past or for the future, and CBM agrees to permit the use
      of its name in all such suits and sign all necessary papers. The expenses
      of such suit or suits shall be paid by Stryker, and any and all recoveries
      from said suit or settlements thereof shall go to Stryker. Should Stryker
      fail to take the necessary steps by litigation or otherwise to stop
      infringement in the Dental Field of the


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      Licensed Dental Intellectual Property, then CBM may conduct at its own
      expense, and with the right to all recoveries, such litigation as it may
      deem necessary, provided that CBM has first given a written sixty (60) day
      notice to Stryker of its intention to initiate such litigation, and
      provided further, that Stryker fails during said sixty (60) days' period
      to indicate its willingness to initiate said suggested litigation or fails
      to initiate said suggested litigation within four (4) months after said
      notice. The party conducting any litigation shall keep the other party
      reasonably informed as to all actions in the litigation and the party not
      conducting the litigation shall assist and cooperate with the party
      conducting the litigation and shall be reimbursed by the conducting party
      for the out-of-pocket expenses reasonably incurred by it in connection
      with providing such assistance and cooperation.

            D. Stryker agrees to reimburse CBM for its pro rata share of all
      costs incurred after August 1, 1996 in the prosecution and defense of the
      Licensed Patent Rights, which costs will be prorated by agreement of the
      parties based on a good faith estimate of the relative value of the patent
      or application inside and outside the Dental Field but, if the parties
      cannot otherwise agree, each will bear half the cost. CBM agrees that it
      will consult with Stryker with respect to issues that arise in the course
      of the


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      prosecution of the Licensed Patent Rights and that it will not abandon any
      claims related to the Dental Field without the prior written consent of
      Stryker.

            E. Stryker acknowledges that certain of the Licensed Patent Rights
      are the subject of a Cross-License Agreement entered into among Stryker,
      CBM and Genetics Institute, Inc. (for itself and the GPDC Partnership
      referred to therein).

            F. As part of the consideration for the license of the Licensed
      Dental Intellectual Property hereunder, Stryker agrees to pay to CBM, by
      wire transfer to the account designated in writing by CBM, the sum of
      $500,000.

            G. Stryker agrees that it will employ such reasonable efforts as are
      necessary to diligently proceed with research and product development work
      with regard to the development of OP Products and OP Devices for dentin
      regeneration and the treatment of Periodontal Disease. With respect to
      dentin regeneration, Stryker agrees to complete the current clinical
      trials and then to evaluate this program. With respect to the treatment of
      Periodontal Disease, Stryker agrees to prepare a work plan that
      contemplates the commencement of human feasibility studies of such OP
      Products and Devices prior to *. Stryker's agreements herein with regard
      to the continuation of the programs regarding the development of OP
      Products and OP


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      Devices for dentin regeneration and the treatment of Periodontal Disease
      are subject, however, in each case, to the cessation of such activities at
      any time in the event of adverse findings regarding safety or efficacy or
      any other matter that in Stryker's judgment adversely affects Stryker's
      ability to develop a commercially marketable product therefor. Stryker
      also agrees to evaluate the results of CBM's research regarding the
      treatment of tooth sensitivity and to make a decision regarding the
      resumption of that program. In the event that Stryker determines that the
      development of a commercially marketable product for dentin regeneration
      or the treatment of Periodontal Disease or tooth sensitivity is not
      feasible, Stryker agrees that it will consider entering into a license and
      sublicense, which license and sublicense shall not include the right to
      grant sublicenses without Stryker's written consent, with CBM or a third
      party proposed by CBM that is acceptable to Stryker in its reasonable
      discretion with respect to the use and exploitation of the patent rights
      of Stryker owned by Stryker pursuant to Section 1.4A of this Agreement and
      of the Licensed Dental Intellectual Property insofar as they relate to
      dentin regeneration or the treatment of Periodontal Disease or tooth
      sensitivity, as the case may be. In exercising its discretion in
      determining that a proposed third-party licensee/sublicensee is not
      acceptable


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      to it, Stryker may take into account, among other things, the economic
      terms of any such license and sublicense, the fact that the proposed
      third-party licensee/sublicensee is a competitor of Stryker in the OP
      Field and the protections against off-label use of products produced by
      the proposed third-party licensee/sublicensee that are included in the
      proposed terms of any such license and sublicense.

            H. Stryker and CBM agree that the Research Project will be expanded
      to cover projects related to the programs to be continued by Stryker with
      respect to the development of OP Products and OP Devices for dentin
      regeneration and the treatment of Periodontal Disease and tooth
      sensitivity, if Stryker determines to proceed with any such program. In
      such event, the specific projects on which CBM will work and the maximum
      number of full-time equivalents to be allocated to them in any month shall
      be determined in advance by one or more written documents (a "Dental Field
      Related Current Scope of Work") and the term "Current Scopes of Work," as
      defined in paragraph B of Section 1.1 shall include any such Dental Field
      Related Current Scope of Work.

            I. Stryker shall reimburse CBM for all expenses incurred by CBM
      after July 31, 1996 in connection with research efforts and clinical
      trials related to the Dental Field up to an aggregate of $85,000 or such
      greater amount as may have been approved in advance by Stryker in writing


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      promptly upon receipt of an invoice or invoices therefor that provides
      detailed information with respect to the particular expenses for which
      reimbursement is sought. Except as set forth in the preceding sentence, it
      is expressly understood and agreed that Stryker is not assuming any
      obligation or liability incurred or that may be incurred as a result of
      the work performed prior to the date hereof by CBM or by third patties
      under contract to CBM related to the development of OP Products and OP
      Devices with applications in the Dental Field, including, but not limited
      to, product liability claims, claims arising out of treatments prior to
      the date hereof in connection with preclinical or clinical trials,
      including with respect to all patients currently enrolled therein, and
      that Stryker is not assuming any obligation or liability of CBM to any
      third party under any agreement or understanding related to such
      development efforts, whether incurred prior to or on or after the
      execution and delivery of this Agreement (collectively, the "Preexisting
      CBM Obligations"). CBM agrees to indemnify and hold Stryker harmless from
      any and all losses, costs, expenses (including attorneys' fees and
      expenses), fees, liabilities and damages sustained or that may be
      sustained by Stryker to the extent they arise out of Preexisting CBM
      Obligations.


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            J. Nothing in this Agreement, including, without limitation, the
      acceptance of the license of the Licensed Dental Intellectual Property
      pursuant to this Section 1.7, shall constitute a waiver by Stryker of its
      right to ownership of any portion of the Licensed Dental Intellectual
      Property that is subsequently determined to have been conceived, made,
      developed or reduced to practice as part of the Research Project by CBM or
      any of its personnel or by any third party under contract to CBM.

            K. Stryker acknowledges that any patent rights owned by Stryker that
      arise from any Dental Field Related Current Scope of Work shall be Future
      Patents and Applications and shall be covered by the License with respect
      to all uses and applications of the inventions claimed therein other than
      in the OP Field.

            6. The first sentence of subparagraph (iv) of Section 3.2C of the
Agreement shall be amended to read in its entirety as follows:

             (iv) if Stryker shall at any time after the date hereof decide not
      to proceed, or fail to diligently proceed with its obligations under
      Section 1.lE, other than with respect to applications in the Dental Field
      that are treated separately in Section 1.7G of this Agreement, and such
      failure shall continue for three (3) months after notice from CBM, Stryker
      shall


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      reassign to CBM all of the rights and licenses otherwise granted to
      Stryker under this Agreement and the Patent Assignment.

            7. Section 3.5 of the Agreement is hereby amended by adding, at the
end thereof, the following language:

      ; provided, however, that in the event of any controversy or claim
      relating to the provisions of this Agreement pertaining exclusively to
      matters arising under Section 1.7 hereof, the arbitration shall take place
      in Boston, Massachusetts.

            8. The specific amendments of certain provisions of the Agreement
set forth in paragraphs 1, 2, 3, 4, 6 and 7 hereof shall be effective as of the
date hereof and the provisions set forth in paragraph 5 hereof shall be deemed
to be added to Article I of the Agreement effective as of the date hereof.
Except as specifically provided herein, the terms and provisions of the
Agreement shall continue in full force and effect in all respects and are hereby
confirmed by the parties hereto.

            9. This Agreement may be executed in counterparts and shall become
effective when one or more counterparts have been signed by each of the parties.


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            IN WITNESS WHEREOF, the parties hereto have-executed this Amendment
Agreement as of the 31st day of October, 1996.

CREATIVE BIOMOLECULES, INC.               STRYKER CORPORATION

/s/Michael M. Tarnow                      /s/John W. Brown
---------------------------------         ----------------------------------
Michael M. Tarnow                         John W. Brown
President and Chief                       Chairman of the Board,
Executive Officer                         President and Chief
                                          Executive Officer


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                                   SCHEDULE I.

CaseNumber     Country    Application Number:    Filing Date:   Patent Number:

*


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                                   SCHEDULE I.

CaseNumber     Country    Application Number:    Filing Date:   Patent Number:

*


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                                  SCHEDULE II.

          Pending and Issued CBM Patent Filings Relating to Dental Field

   **The inventions and improvements in the patent applications and patent(s)
          listed herein are licensed only for use in the Dental Field.

CaseNumber     Country    Application Number:    Filing Date:   Patent Number:

 *


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