>>SAN DIEGO, Aug. 20 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA - news); (``Arena'') today announced the signing of a license agreement with TaiGen Biotechnology Co., Ltd. (``TaiGen''), a privately-held biopharmaceutical organization located in Taipei, Taiwan. Under the terms of the agreement, TaiGen has the right to select validated screening assays that include CART-activated G protein-coupled receptors for use by TaiGen in the development of therapeutics that target the receptors. The selection by TaiGen is segregated into two stages based upon the successful completion by TaiGen of certain business milestones. Under the terms of the agreement, Arena has secured the right of first negotiation with respect to any TaiGen compound discovered by TaiGen using the Arena screening assays. Tiered single to double-digit royalty payments to Arena are also provided for under the agreement based upon sales of products that may be developed or out-licensed by TaiGen using the Arena assays. Additionally, to the extent that TaiGen does not out-license the compounds that it discovers using the Arena assays or begin human clinical trials using such compounds within designated periods of time, then Arena has the right to receive back from TaiGen the related screening assay and CART-activated receptor, as well as the compounds discovered by TaiGen using such assay. In those circumstances, TaiGen and Arena will then share in the revenues or payments derived from the sale of compounds that may be further developed or out-licensed by Arena. Additional terms were not disclosed.
``In addition to our internal research efforts as well as those of our current partners, we anticipate that our relationship with TaiGen will further accelerate the development of pharmaceutical products discovered using our CART Technology and Melanophore Technology,'' stated Jack Lief, President & CEO of Arena. ``We believe that TaiGen is a well capitalized start-up organization that has attracted a variety of top-tier investors, including MPM Asset Management as the lead investor, China Development Industrial Bank, and the government of the Republic of China (Taiwan).'' Mr. Lief additionally noted that, ``Ming-Chu Hsu, TaiGen's President and CEO, has extensive experience in the area of pharmaceutical discovery and development, including 11 years in various positions at Hoffmann LaRoche, USA, such as Research Director, Department of Oncology and as Director, Department of Virology. Most recently, Dr. Hsu served as Director, Division of Biotechnology and Pharmaceutical Research, National Health Research Institutes ('NHRI'), Taiwan's functional equivalent of our National Institutes of Health.'' Mr. Lief further added, ``I am confident that we have established the basis of a productive and mutually rewarding scientific and business relationship with TaiGen, and I look forward to working with TaiGen in the coming years. With respect to the remainder of 2001, we anticipate recognizing revenue from this relationship, based on the delivery to and acceptance by TaiGen of our validated assays.''
Arena's CART Technology allows for ligand-independent, direct identification of small molecule compounds that regulate the activity of G protein-coupled receptors. CART is particularly useful with respect to orphan GPCRs that are estimated to comprise approximately 2% of the human genome. Such ligand independent screening is made possible by genetic alteration of these receptors, using widely applicable and proprietary genetic cassettes. Arena has established CART collaborations with several pharmaceutical and biotechnology organizations. Arena is also using the Melanophore Technology in combination with its CART Technology for internal drug discovery purposes. Through BRL Screening, Inc., a wholly-owned subsidiary of Arena, Arena intends to also license the Melanophore Technology to biotechnology and pharmaceutical organizations.
TaiGen, located in Taipei, Taiwan, is a privately-held start-up organization with a focus on the discovery of novel treatments in the areas of oncology and immunology. Created with the assistance of the Government of Taiwan, TaiGen is focused on establishing itself as an initial biotechnology- based commercial enterprise in Taiwan. TaiGen recently closed $24 million (U.S.) out of a $48 million (U.S.) total Series A financing round. Key NHRI scientists, including Dr. Hsu, have joined or have agreed to join TaiGen.<<
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