Tuesday August 3, 8:51 am Eastern Time
Company Press Release
Cadus Announces Sale of Drug Discovery Assets
TARRYTOWN, N.Y.--(BUSINESS WIRE)--Aug. 3, 1999--Cadus Pharmaceutical
Corporation (NASDAQ: KDUS - news) announced today that it sold to OSI
Pharmaceuticals, Inc. (NASDAQ: OSIP - news) its drug discovery programs focused on G
protein-coupled receptors, its directed library of approximately 150,000 small molecule compounds specifically designed for
drug discovery in the G protein-coupled receptor arena, its collaboration with Solvay Pharmaceuticals B.V., its lease to its
research facility in Tarrytown, New York together with the furniture and fixtures and its lease to equipment in the facility, and its
inventory of laboratory supplies.
OSI also agreed to employ more than 45 of Cadus's scientific and administrative personnel. Cadus received approximately
$1,500,000 in cash and OSI assumed certain liabilities of Cadus as consideration for the sale. In addition, Cadus would be
entitled to royalties and up to $3.0 million in milestone payments on the first product derived from compounds sold to OSI or
from the collaboration with Solvay Pharmaceuticals B.V.
Cadus will retain ownership of all its other assets, including its core yeast technology for developing drug discovery assays, its
collection of over 25,000 proprietary yeast strains, human and mammalian cell lines, and genetic engineering tools, its program
to identify and isolate human orphan G protein-coupled receptors and elucidate their function, its proprietary software, its
genomics databases related to G protein-coupled receptors, the LivingChip(TM) program, all assays and technologies reverting
to Cadus from its collaboration with Bristol-Myers Squibb Company, a 30% equity position in Axiom Biotechnologies Inc., the
company's current cash and cash equivalents, and the approximately $18.7 million being held in escrow pending appeal of the
verdict in favor of SIBIA Neurosciences, Inc. (''SIBIA'').
Cadus will cease its drug discovery operations and research efforts for collaborators as a result of the transaction. OSI will
assist Cadus in winding up its research efforts on behalf of SmithKline Beecham Corporation. Consequently, Cadus has
terminated all employees who were not hired by OSI, except for two officers and four transitional employees. Cadus's Board
of Directors intends to continue to seek to realize value from the company's assets.
This press release may contain forward-looking statements that involve a number of risks and uncertainties. Important factors
that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the
company's prospectus dated July 17, 1996 or detailed from time to time in filings that the company makes with the Securities
and Exchange Commission. These include risks and uncertainties relating to the company's ongoing litigation with SIBIA,
including uncertainties regarding the outcome of appeals and the re-examination of SIBIA's patent at issue in the litigation, risks
and uncertainties relating to the company's ability to realize value from its assets, technological uncertainties regarding the
company's technology, rapid technological change, an intensely competitive market, intellectual property rights, and general
economic conditions.
This release is available at Cadus's Home Page (www.cadus.com).
Contact:
Cadus Pharmaceutical Corporation, Tarrytown
Charles Woler, M.D., Ph.D.
President and Chief Executive Officer
Telephone: 914/467-6222
E-Mail: Charles.Woler@cadus.com |
