LA JOLLA, Calif.--(BUSINESS WIRE)--Nov. 3, 1997--Sequana
Therapeutics, Inc. (NASDAQ:SQNA) Monday announced a broad-based
genomics alliance with the Parke-Davis division of Warner-Lambert
Company (NYSE:WLA) to develop novel therapeutic products for
schizophrenia and bipolar disorder (manic depression), two of the
most debilitating central nervous system (CNS) disorders. The
alliance will combine Sequana's capabilities in gene discovery,
functional genomics, bioinformatics and high-throughput screening
with Parke-Davis' research, development and clinical expertise in the
CNS area.
The agreement provides for payments to Sequana of up to $103
million in the form of up-front licensing fees, research funding and
milestone payments, almost half of which represents committed
funding. In addition, Sequana will receive royalties on sales of any
small molecule therapeutic products resulting from the alliance. The
term of the alliance is five years, extendible in one-year increments
to a period of eight years with commensurate increases in research
funding. Parke-Davis gains exclusive worldwide commercial rights for
small molecule therapeutic products, while Sequana retains worldwide
rights to develop and commercialize recombinant protein, antisense,
gene therapy, vaccine, diagnostic, prognostic and pharmacogenetic
products and services.
The size and scope of this alliance reflects Sequana's expanded
"gene to lead" approach and its ongoing strategy to play an
increasingly important role in the drug discovery process. Sequana's
approach integrates the company's proven gene discovery technologies
with its advanced functional genomics and high- throughput screening
capabilities. Sequana has built or refined several functional
genomics and screening technologies over the past two years,
including the company's RAMMP(TM) (RApid Mouse Model Production)
technology for transgenic animal studies, DNA chip-based expression
systems, computational biology tools, and the proprietary
NemaScreen(R) technology for high-throughput screening using the
well-characterized nematode worm.
As part of the alliance, Sequana also will grant Parke-Davis a
non-exclusive license to use certain of the company's bioinformatics
software tools for the collection and analysis of genomic data,
including LIMS-Lite(TM), SequaSearch(TM) and BioAgent DB(TM), among
other proprietary tools. Sequana believes that the application of
these bioinformatics technologies at Parke-Davis' laboratory
facilities will increase the speed and efficiency at which the
companies can develop commercial products while aiding Parke-Davis in
its expansion of its internal genomics capabilities.
"This partnership with Parke-Davis gives us the opportunity to
fuse our broad range of genomics technologies into one comprehensive
program aimed at finding promising lead compounds to treat common
psychiatric disorders," commented Kevin J. Kinsella, president and
CEO of Sequana. "We look forward with great enthusiasm to combining
Sequana's gene-based discovery capabilities with Parke-Davis' strong
research and development expertise in the CNS area."
"Sequana brings to this collaboration what we think is the best
mix of genomics technologies in the industry," added Leonard Post,
Ph.D, Vice President of Discovery Research at Parke-Davis. "This
collaboration promises to be both an important step for Parke-Davis
in the field of genomics, and a major component of our future
discovery strategies in psychiatric diseases."
Schizophrenia and bipolar disorder, two of the most chronic,
debilitating and costly mental illnesses, afflict approximately five
million Americans and cost the United States more than $50 billion
annually, according to the National Institute of Mental Health. The
overt symptoms of schizophrenia include hallucinations, delusions,
and bizarre thought patterns, while characteristics of bipolar
disorder involve fluctuations between mania and depression.
To date, Sequana has collected DNA samples from several hundred
families affected by schizophrenia and bipolar disorder, has
completed full genome scans, and has identified several small genetic
regions which the company believes contain one or more genes
associated with each disease. With the signing of this agreement,
Sequana will continue efforts to narrow these genetic regions in
search of disease-causing genes and, together with Parke-Davis, will
analyze candidate genes and drug targets using Sequana's large-scale
gene expression technologies and developmental biology expertise.
Upon the identification of molecular targets, Sequana plans to
utilize its NemaScreen(R) technology to screen for potential small
molecule compounds using Parke-Davis' compound library.
Sequana Therapeutics, Inc. (NASDAQ: SQNA) is a leading genomics
company that uses industrial-scale gene discovery and functional
genomics technologies to develop products aimed at diagnosing and
treating common human diseases. Sequana has ongoing discovery
programs in asthma, diabetes, obesity, osteoporosis, schizophrenia
and manic depression, among other important disease areas, and has
scientific collaborations with several major pharmaceutical and
biotechnology companies worldwide. Sequana employs approximately 200
people at its headquarters in La Jolla, California and at its
subsidiary, NemaPharm, Inc., in Cambridge, Massachusetts.
Information about Sequana may be obtained on the World Wide Web at
sequana.com or by phoning (619) 452-6550.
Parke-Davis is devoted to discovering, developing, manufacturing
and marketing quality pharmaceutical products. Parke-Davis
Pharmaceutical Research, headquartered in Ann Arbor, Michigan, is a
division of Warner-Lambert Company (NYSE: WLA), whose three principal
lines of business include pharmaceutical, consumer healthcare and
confectionery products. Warner-Lambert employs approximately 40,000
people and is headquartered in Morris Plains, New Jersey.
The statements in this news release relating to the potential
discovery of disease genes, the subsequent development of products
for schizophrenia and bipolar disorder, and the payments to be paid
to Sequana by Parke-Davis are forward looking statements, which
involve risks and uncertainties, including Sequana's ability to
utilize its technologies to discover genes and to translate gene
discoveries into potential drug leads, the successful continuation of
the collaboration between Sequana and Parke-Davis, Sequana's ability
to find more than one gene for each disease area, the ability of
Sequana and Parke-Davis to identify multiple targets for therapeutic
intervention, the ability of Parke-Davis to develop and commercialize
small molecule therapeutic products based on Sequana's gene
discoveries, and the impact of competitive gene discoveries,
technologies and potential products. For a discussion of the other
risks and uncertainties potentially affecting Sequana's business, see
the company's Form 10-K for the year ending December 31, 1996.
Actual results and the timing of certain events could differ
materially from those indicated in the forward looking statements as
a result of these or other factors.
CONTACT: Sequana Therapeutics, Inc.
Scott Salka, VP Operations and CFO
619/646-8225, scott@sequana.com
or
Bob Giargiari, Investor Relations
619/646-8313, bob@sequana.com
KEYWORD: CALIFORNIA MASSACHUSETTS
INDUSTRY KEYWORD: MEDICINE PHARMACEUTICAL BIOTECHNOLOGY
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