Aradigm and Genentech Discontinue AERx (R) rhDNase Development Program and Will Execute New Broad-Based Feasibility Agreement
- Product Feasibility Agreement To Be Signed; Joint Development Program for Delivery of rhDNase Using AERx System Discontinued for Commercial Reasons -
HAYWARD, Calif., Feb. 5 /PRNewswire/ -- Aradigm Corporation (Nasdaq: ARDM - news) today announced they have mutually agreed with Genentech to discontinue the development of rhDNase using Aradigm's proprietary AERx (R) System. The decision was made based on commercial considerations. rhDNase is the active ingredient in Genentech's currently marketed product Pulmozyme (R) (dornase alfa) Inhalation Solution. The companies also announced that they will be entering into a new agreement allowing Genentech to evaluate the feasibility of using the AERx Pulmonary Drug Delivery System for the pulmonary delivery of other Genentech compounds.
``While the cancellation of this program will have no significant impact on our financials, we are disappointed that it won't be going forward,'' stated Richard P. Thompson, chairman and chief executive officer of Aradigm. ``We have demonstrated technical success through the completion of the Phase 2a study and we now look forward to continuing our relationship with Genentech and potentially collaborating to conduct feasibility studies on other proteins or small molecules.''
``We believe Aradigm's technology shows promise. The cancellation of the Pulmozyme program was a business decision for Genentech based on a review and prioritization of our development efforts,'' said Joseph S. McCracken, D.V.M., Genentech's vice president, business development.
As part of the transitioning to the new agreement, Genentech will not require Aradigm to repay the loan of funds required to conduct development to date. As a result, Aradigm will show a one-time recognition of revenue for all program development costs. Further financial details of the agreement are not being disclosed.
Conference Call
The company will host a conference call and question and answer session on Monday, February 5, 2001 at 10:30 a.m. Eastern (7:30 a.m. Pacific). Dial (800) 946-0785 to access the conference call. International callers, dial (719) 457-2661 and reference access code: 621478. The event web cast can be found under the investor relations section at: www.aradigm.com. A replay of the conference call will be available for one week following the call, and can be accessed on www.aradigm.com or by dialing (888) 203-1112. International callers should dial (719) 457-0820. The replay access code is 621478.
Aradigm is working to improve the quality of life of patients by developing aerosol-based drug delivery alternatives to injectable therapeutics. The Company's advanced pulmonary delivery technologies provide leading pharmaceutical and biotechnology partners with effective drug delivery solutions. Current development programs focus on diabetes, pain management, and the pulmonary delivery of emerging biotech therapeutics.
Based in Hayward, California, Aradigm is currently developing products for diabetes management with Novo Nordisk A/S, the world leader in insulin and diabetes care and is developing products in the area of pain management for GlaxoSmithKline, a world leader in oncology therapy and supportive care. In addition, Aradigm has three additional partner-funded development programs and a gene therapy effort funded through the National Institutes of Health. More information about Aradigm can be found at www.aradigm.com. |
