>>SOUTH SAN FRANCISCO, and CAMBRIDGE, Mass., Nov. 22 /PRNewswire-FirstCall/ -- Cell Genesys, Inc. (Nasdaq: CEGE - News) and Genzyme Corp. (Nasdaq: GENZ - News) today announced that Genzyme has acquired Cell Genesys' manufacturing operation in San Diego, CA to support the growth of Genzyme's gene therapy programs. Under the terms of the agreement, Genzyme will pay Cell Genesys $3.2 million in cash for the assets contained in the 47,000 square-foot leased facilities. Most of the approximately 40 employees formerly employed by Cell Genesys have become Genzyme employees.
"We are pleased to conclude this transaction and be able to transfer our San Diego manufacturing operation to Genzyme, a leading biotechnology company," said Michael W. Ramsay, Cell Genesys' senior vice president, operations. "We recognize the significant contributions of the San Diego team for their work in advancing the production of our oncolytic virus therapy products, as well as the gene therapy products now in clinical development through our former subsidiary, Ceregene, Inc."
Genzyme plans to use the acquired assets and the new facilities to support its ongoing research and clinical trials, and to broaden the company's manufacturing capabilities related to both Adenovirus and Adeno-Associated Virus vectors. These vectors are used to deliver genes to the appropriate cells in patients.
The most advanced gene therapy program at Genzyme is an ongoing phase 2 clinical trial examining the safety and effectiveness of locally delivered Ad2/HIF-1 alpha, an engineered form of the HIF-1 alpha gene, for patients with peripheral arterial disease. Genzyme's experimental therapy is designed to promote the growth of new blood vessels and improve circulation in patients' limbs. The primary endpoint is change in the maximum amount of time a patient can walk on a treadmill without stopping due to pain from intermittent claudication.
Genzyme's gene therapy portfolio also includes pre-clinical work related to lysosomal storage disorders and, in partnership with Excigen, Inc., atrial fibrillation. Genzyme is also conducting pre-clinical gene therapy research through a joint effort with Applied Genetic Technologies.
"Addition of this state-of-the-art manufacturing facility will support the growth of our gene therapy program and significantly strengthen our ability to produce quantities of both Adenovirus vectors and Adeno-Associated Virus vectors," said Blair Okita, senior vice president of manufacturing and development at Genzyme. "We are very pleased to add the expertise of the Cell Genesys team to our organization, and we welcome them to Genzyme."
The San Diego manufacturing operation was purchased by Cell Genesys from Chiron Corp. in 2001 for $4.8 million. Cell Genesys' decision to sell the operation was part of a strategic restructuring plan to focus its resources on its most advanced and most promising product development programs. The portfolio decisions resulted in a reduction of the company's manufacturing needs in the viral product area. The agreement between Cell Genesys and Genzyme includes an opportunity for Cell Genesys to have its lead oncolytic virus therapy product, CG0070, manufactured under contract with Genzyme. CG0070 is currently in a phase 1 trial for recurrent bladder cancer. Cell Genesys maintains its principal manufacturing operations for GVAX® cancer vaccines in Hayward, CA.<<
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