GENE<------------- Pacific Equity Investigations rates @ 8-10 Dollars, it a buy and an accumulate on Dips,, I own at 10 and 11 and will add in the 7's and 8's if it retraces ..This deal is for real and are The Compnay furthest along with God Money Support From SPG::
( I should add That I still own IMCL and Biotech and medicine is my specialty fields in the Mkt )
Schering-Plough (S. aureus) In 1995, the Company entered into a collaboration and license agreementwith Schering-Plough providing for the use by Schering-Plough of the genomicsequence of S. aureus to identify new gene targets for development ofantibiotics effective against drug-resistant infectious organisms. As part ofthis agreement, the Company granted Schering-Plough exclusive access to theCompany's proprietary S. aureus genomic sequence database. The Company alsogranted Schering-Plough a non-exclusive license to use the Company'sbioinformatics systems for Schering-Plough's internal use in connection with thegenomic databases licensed to Schering-Plough under the agreement and othergenomic databases Schering-Plough develops or acquires. The Company also agreedto undertake certain research efforts to identify bacteria-specific genesessential to microbial survival and to develop biological assays for use bySchering-Plough in screening natural product and compound libraries for thepurpose of identifying antibiotics with new mechanisms of action. Under thisagreement, Schering-Plough agreed to pay an initial license fee and fund aresearch program for a minimum two and a half years with options to extend. InMarch 1998, Schering-Plough elected to extend the research program through March31, 2000. Under the agreement, Schering-Plough agreed to pay the Company aminimum of $18.5 million in an up-front license fee, research funding andmilestone payments. Subject to the achievement of additional product developmentmilestones, Schering-Plough has agreed to pay the Company up to an additional$24 million in milestone payments. The company has achieved all of the scientific milestones scheduled to dateunder this agreement. Several undisclosed novel targets, identified andvalidated by GTC, and screening assays have been delivered to Schering-Ploughfor high-throughput drug candidate screening. The Company has receivedapproximately $17.6 million in up-front license fee, research funding, andmilestone payments through August 31, 1999. For the Company's fiscal years endedAugust 31, 1997, 1998 and 1999, revenue recognized by the Company under thisagreement with Schering-Plough accounted for approximately 20%, 18% and 10%,respectively, of the Company's total revenue. The agreement grants Schering-Plough exclusive worldwide rights to make useand sell pharmaceutical and vaccine products based on the genomic sequencedatabases licensed to Schering-Plough by the Company and the technologydeveloped during the course of the research program. GTC also grantedSchering-Plough a right of first negotiation if, during the term of the researchplan, GTC desires to enter into a collaboration with a third party with respectto the development or sale of any compounds which are targeted against, as theirprimary indication, the pathogen that is the principal subject of the Company'sagreement with Schering-Plough. The Company will be entitled to receiveroyalties on Schering-Plough's sale of therapeutic products and vaccinesdeveloped using the technology licensed by the Company. Subject to certainlimitations, GTC retains the rights to make, use, and sell diagnostic productsdeveloped utilizing the Company's genomic database licensed to Schering-Ploughor the technology developed during the course of the research program. Schering-Plough (Asthma) In 1996, the Company established its second research collaboration andlicense agreement with Schering-Plough. This agreement calls for the use ofgenomics to discover new therapeutics for treating asthma. As part of theagreement, the Company will employ its high-throughput disease geneidentification, bioinformatics, 10 and genomics sequencing capabilities to identify genes and associated proteinsthat can be utilized by Schering-Plough to develop new pharmaceuticals. Underthis agreement, the Company granted Schering-Plough exclusive access to (i)certain gene sequence databases made available under this research program, (ii)information made available to the Company under certain third party researchagreements, (iii) an exclusive worldwide right and license to make, use and sellpharmaceutical and vaccine products that may result from this collaboration. GTCretains the rights to diagnostic products. Under this agreement, Schering-Plough agreed to pay an initial license feeand an expense allowance to the Company. Schering-Plough is also required tofund a research program for a minimum number of years with an option to extend.In addition, upon completion of certain scientific developments, Schering-Ploughwill make milestone payments to the Company, as well as pay royalties to theCompany based upon sales of therapeutic products developed from thiscollaboration. If the Company meets all the milestones, total payments to theCompany will be approximately $68 million, excluding royalties. The Company has achieved all the scientific milestones scheduled to dateunder this agreement. In September 1998, Schering-Plough authorized anacceleration of the program resulting in a significant increase in fundedresearch for 1999. Of the total potential payments, approximately $23.5 millionrepresents license fees and research payments, and $44.5 million representsmilestone payments based on achievement of research and product developmentobjectives. The company received approximately $21.7 million in up-front licensefee, research funding, and expense allowances through August 31, 1999. For theCompany's fiscal years ended August 31, 1997, 1998 and 1999, revenue recognizedunder this agreement with Schering-Plough accounted for approximately 28%, 37%and 41%, respectively, of the Company's total revenue. Schering-Plough (Fungal) In September 1997, the Company established its third research collaborationand license agreement with Schering-Plough for use of genomics to discover anddevelop new pharmaceutical products to treat fungal infection(s). Under theagreement, the Company will utilize its bioinformatics, high-throughputsequencing and functional genomics capabilities to identify and validate genesand associated proteins as drug discovery targets that can be utilized bySchering-Plough to develop novel antifungal treatments. Schering-Plough willreceive exclusive access to the genomics information developed in thecollaboration related to two fungal pathogens, Candida albicans, and Aspergillusfumigatus. Schering-Plough will also receive exclusive worldwide right to make,use, and sell products based on the technology developed during the course ofthe research program. In return, Schering-Plough agreed to fund a researchprogram for a minimum of two and a half years with an option to extend. If allmilestones are met and the research program continues for its full term, totalpayments to the Company will approximate $34 million, excluding royalties. TheCompany received approximately $7.5 million in research funding and milestonepayments through August 31, 1999. For the Company's fiscal year ended August 31,1999, revenue recognized under this agreement with Schering-Plough accounted forapproximately 13% and 20%, respectively, of the Company's total revenue. |
