Here's the news release announcing the closed deal:
ARIAD ANNOUNCES CLOSING OF JOINT VENTURE IN FUNCTIONAL GENOMICS
CAMBRIDGE, Mass., March 19 /PRNewswire/ -- ARIAD Pharmaceuticals, Inc.
(Nasdaq: ARIA) today announced the closing of its previously disclosed
50/50 joint venture with Hoechst Marion Roussel to pursue functional
genomics. The companies have agreed to commit $85 million to the
establishment of the joint venture and its first five years of
operation. The joint venture, called the Hoechst-ARIAD Genomics
Center, LLC, will be located at ARIAD's research facilities in
Cambridge, Massachusetts.
The Genomics Center will employ state-of-the-art technologies in
molecular and cellular genetics and bioinformatics to analyze human
genes and identify those genes that encode novel therapeutic proteins
or targets for small- molecule drug discovery. Operating costs of the
joint venture and the rights to candidate therapeutic proteins and drug
targets will be divided equally between Hoechst Marion Roussel and
ARIAD.
In connection with the closing of the joint venture, Hoechst Marion
Roussel purchased 2.5 million shares of ARIAD series B convertible
preferred stock for $24 million. This preferred stock is convertible
one-for-one into ARIAD common stock and represents 12 percent of
ARIAD's outstanding shares. At ARIAD's option, Hoechst Marion Roussel
will make additional purchases of series B preferred stock aggregating
up to $25 million. These purchases will be made in accordance with a
predefined pricing formula but in no case will represent more than a
total of 1.8 million additional shares of ARIAD preferred stock.
ARIAD Pharmaceuticals is engaged in the discovery and development of
novel pharmaceuticals based on intracellular signaling technology. The
company has established highly integrated capabilities in functional
genomics, molecular cell biology, structure-based drug design,
combinatorial chemistry and pharmacology. ARIAD is developing
small-molecule drugs that block signal transduction pathways in cells
responsible for osteoporosis, and immune and inflammatory diseases. In
addition, the company has developed a system to control signal
transduction pathways for the regulation of therapeutic protein
production in gene therapy.
Some of the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties, including but not
limited to economic, competitive, governmental and technological
factors affecting ARIAD's operations, markets, products, services and
prices, and other factors discussed under the heading "Cautionary
Statement Regarding Forward-Looking Statements" in ARIAD's Annual
Report on Form 10-K filed with the Securities and Exchange Commission.
SOURCE ARIAD Pharmaceuticals, Inc.
-0- 03/19/97 /CONTACT: Charles C. Cabot
III, 617-494-0400 or Tom Pearson, 610-407-9260, both of ARIAD/
(ARIA)
CO: ARIAD Pharmaceuticals, Inc.; Hoechst Marion Roussel ST:
Massachusetts IN: MTC SU: JVN |
