Lexicon Genetics Concludes Agreement With Merck Genome Research Institute
THE WOODLANDS, Texas, Sept. 29 /PRNewswire/ -- Lexicon Genetics Incorporated (Nasdaq: LEXG - news) announced the conclusion of its 1997 agreement with the Merck Genome Research Institute (MGRI). Under the agreement, MGRI provided funding for the development of Lexicon's proprietary gene trapping process for the production of Lexicon's OmniBank® library of knockout mouse clones for functional genomics research. Lexicon has attained significant achievements in the past year: widespread use of knockout mice from OmniBank for drug discovery by both industry and the academic research community; a major milestone achievement of altering one-third of the mouse genome; and the recent issuance of a patent to Lexicon that broadly covers its gene trapping technology. With these important accomplishments, MGRI and Lexicon agreed to bring the agreement to a conclusion.
``The Lexicon agreement was considered to be MGRI's most ambitious functional genomics award when signed in 1997,'' said C. Thomas Caskey, M. D., Chairman of the Board of Lexicon Genetics and former President of MGRI. ``By delivering on the promise of its gene trapping technology and gaining broad commercial acceptance of its OmniBank library in the research community, Lexicon has achieved the goals of the MGRI agreement.''
Under the agreement, MGRI paid Lexicon $4.0 million upon commencement of the program and agreed to provide additional funding over time. As a result of the arrangements concluding the agreement, MGRI will make a final, additional cash payment to Lexicon in the amount of $1.0 million. Lexicon will recognize in the quarter ending September 30, 2000 deferred revenues of approximately $3.1 million from the cash payment made by MGRI to Lexicon at the outset of the agreement. In addition, Lexicon will regain exclusive rights to all lines of OmniBank mice produced for MGRI but not delivered before the agreement's conclusion. MGRI will retain rights to distribute OmniBank mice delivered before the agreement's conclusion, but will give Lexicon rights to include phenotypic information from such mice in Lexicon's LexVision(TM) database. The LexVision program is designed to discover the physiologic function of genes using thousands of knockout mouse models developed through Lexicon's proprietary and patented technologies. The focus of the LexVision program is to discover the functions of thousands of human genes that are thought to have pharmaceutical relevance as drug targets from families of genes such as G-protein coupled receptors, nuclear transmembrane receptors, ion channels, proteases and kinases.<snip> |
