>>>>NEWS! NASDAQ:CYTL
Company Press Release
Cytel Signs Exclusive Sublicensing Agreement With Elan
Elan makes $4 Million Equity Investment in Cytel
SAN DIEGO--(BW HealthWire)--July 29, 1998--Cytel Corporation (NASDAQ:CYTL - news) today announced that it has signed an exclusive sublicensing agreement with Elan Corporation's (NYSE:ELN - news) subsidiary Elan International Services Ltd. (Elan), granting it rights to a pioneering patent involving the use of antibodies that block VLA-4 integrin for the treatment of inflammatory conditions. In addition, Elan will have the option to enter into a non-exclusive sublicense for patent rights to other VLA-4 blocking
compounds. The transaction is subject to clearance by United States regulatory authorities. As a part of the agreement, Elan will make an up-front $4 million equity investment in Cytel, as well as milestone and royalty payments which were not disclosed. An Elan representative will also be appointed to Cytel's Board of Directors, according to Virgil Thompson, Cytel's President and Chief Executive Officer.
''Cytel scientists have demonstrated in several animal models that VLA-4 inhibiting compounds have great potential in treating chronic inflammatory diseases like asthma and multiple sclerosis,'' said Thompson. ''Elan's equity investment in Cytel together with the other payments from this agreement, will serve to support our small molecule therapeutic programs focused on the inhibition of cell adhesion.''
Cytel holds worldwide exclusive rights to patents and patent applications based on integrin research from the Fred Hutchinson Cancer Research Center (FHCRC). Under the
agreement, Cytel will sublicense the FHCRC patent related to antibodies directed against VLA-4 that was issued in the United States earlier this year. Elan's subsidiary, Athena
Neurosciences, is currently in Phase II clinical testing with Antegren(R), a VLA-4 inhibiting humanized monoclonal antibody for the treatment of multiple sclerosis.
The Fred Hutchinson Cancer Research Center is an independent, non-profit cancer research center dedicated to the development and advancement of technology and treatment to
eliminate cancer and many other potentially fatal diseases, including hereditary and autoimmune diseases. The Hutchinson Center is one of 34 National Cancer Institute-designated
comprehensive cancer centers, the only one in the Northwest.
Cytel has discovered cell adhesion inhibitors for treatment of acute and chronic inflammation, and manufactures bioactive carbohydrates for use in medical and consumer products.
Epimmune Inc., its subsidiary, is focused on the discovery and development of a new generation of safer, more potent vaccines for the prevention and treatment of cancer and
infectious diseases.
This press release includes forward-looking statements that reflect management's current views of future events. Actual results may differ materially from the above forward-looking
statements due to a number of important factors, including but not limited to the risks associated with successfully negotiating and completing definitive agreements for any corporate
collaboration, the timing and cost of conducting human clinical trials, the regulatory approval process, and the possibility that testing may reveal undesirable and unintended side
effects or other characteristics that may prevent or limit the commercial use of proposed products. These factors are more fully discussed in Cytel's most recent Forms 10-K and
10-Q.
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