Wednesday April 25, 5:01 am Eastern Time
Press Release
Arena Pharmaceuticals and Axiom Biotechnologies Sign Binding Letter of Intent for Research Collaboration and Equity Investment by Arena in Axiom
The Collaborative Research Program Will Begin Immediately, and Arena's Purchase of $2 Million of Axiom Preferred Stock Expected to be Completed by the End of May 2001
SAN DIEGO--(BW HealthWire)--April 25, 2001-- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA - news; ``Arena'') and Axiom Biotechnologies Inc. (``Axiom''), a privately-held corporation, today jointly announced the signing of a Binding Letter of Intent encompassing the initiation of a collaborative research program involving Axiom's proprietary RHACE(TM) Technology and Human Cell Bank, as well as the purchase by Arena of $2 million of Axiom's preferred stock. The parties expect to begin the scientific collaboration immediately, with Arena's purchase of Axiom's stock anticipated being finalized in late May 2001, subject to completion of due diligence review satisfactory to Arena and other customary closing conditions.
Under the scientific collaboration, the parties will jointly develop and share information related to the localization of known G protein coupled receptors (GPCRs) within proprietary human cell lines owned by Axiom, while Arena will exclusively own the information related to the localization of orphan GPCRs within these cell lines. Axiom will also profile Arena's several thousand small molecule compounds using the Axiom Human Cell Bank and RHACE technologies, and Arena will have exclusive rights to these data. Additional terms and payment amounts were not provided.
``We are very pleased to be working with a premier biotechnology company like Arena,'' stated Pandi Veerapandian, Ph.D., Axiom's President and CEO. ``This alliance meets our strategic goal of supplementing our internal drug discovery efforts through collaborative programs.''
Jack Lief, Arena's President and CEO stated, ``A process which will speed up the discovery of compounds to modulate GPCRs is an immense advantage to the pharmaceutical industry.'' Mr. Lief indicated that ``Arena believes that in combination, Axiom's RHACE Technology and Arena's CART Technology can provide such an advantage.'' |
