Abgenix Acquires Catalytic Antibody Technology
New Class of Therapeutic Antibodies Have Potential to Significantly Reduce Cost of Goods
FREMONT, Calif.--(BW HealthWire)--Nov. 13, 2001--Abgenix, Inc. (Nasdaq:ABGX - news) announced today that it acquired Hesed Biomed, Inc., a privately-held biotechnology company with significant intellectual property and technology in the field of catalytic antibodies. A catalytic antibody (CAb) is a type of monoclonal antibody that cleaves and thereby permanently inactivates a target molecule, and goes on to locate and cleave other identical targets in a continuing process (a catalytic effect) while circulating in the body. While a standard monoclonal antibody (MAb) binds to a target once and temporarily inactivates that target, a single CAb can break down over 100,000 specific disease-promoting proteins during its life span in the body. This key difference could result in greater clinical activity and a much lower cost of goods on a per patient basis.
``The acquisition of Hesed provides Abgenix with a new class of therapeutic antibodies to build a large and diversified portfolio of new and important antibody treatments for serious diseases,'' said R. Scott Greer, chairman and CEO of Abgenix. ``This acquisition is a continuation of Abgenix's strategy of maintaining its leadership position in antibody technologies.''
Geoffrey Davis, Ph.D., Chief Scientific Officer of Abgenix, added, ``The tremendous potential of therapeutic antibody-based products is now recognized in the industry. Antibodies have been our focus from the beginning, and the exciting work being developed at Hesed on catalytic antibodies complements our core technologies for the discovery and development of new therapies. In certain disease settings, CAbs have the potential to dramatically improve the convenience and economics of antibody-based therapies. While significant work remains to fully realize the potential of catalytic antibodies, we now have an opportunity to offer an expanded array of antibody therapies.''
Under the terms of the agreement, Abgenix will issue approximately 540,000 shares of common stock and pay approximately $360,000 in cash, in exchange for all Hesed shares. Abgenix also assumed approximately $2,000,000 of Hesed's debt. The acquisition will be accounted for using the purchase method of accounting.
Background on Hesed and Catalytic Antibodies
Hesed's catalytic antibody technologies were developed by Dr. Sudhir Paul of the University of Texas School of Medicine in Houston and are the subject of issued patents and pending patent applications. Hesed was formed in 1996 by Larry J. Smith, Ph.D. and was joined in 1997 by Dr. Paul and his platform catalytic antibody technology.
The idea of protein-cutting CAbs and their therapeutic potential has attracted the attention of scientists and businessmen alike since the Nobel Laureate Linus Pauling first put forth the concept in the 1940s. It was not until the late 1980s, however, that Dr. Paul made a discovery that may enable commercial production of CAbs. This was the discovery of naturally occurring, protein-cleaving CAbs. Dr. Paul's research has shown that all such CAbs share a ``serine protease'' mechanism. He and his research group have developed methods to isolate CAbs from the immune systems of both humans and mice and to further engineer them to enhance their specificity. Combining these patented methods with Abgenix's XenoMouse® and XenoMax(TM) technologies may provide a means of developing CAbs that can be commercially produced to selectively cleave any chosen protein at predetermined sites.
Abgenix is a biopharmaceutical company focused on the development and commercialization of human monoclonal antibody therapies for a variety of diseases. The company's antibody technology platform, which includes XenoMouse® and XenoMax(TM) technology, enables the rapid generation and selection of high affinity, fully human antibody product candidates to disease targets appropriate for antibody therapy. Abgenix leverages its leadership position in human antibody technology by building a large and diversified product portfolio through the establishment of licensing arrangements with multiple pharmaceutical, biotechnology and genomics companies and through the development of its own internal proprietary products. For more information on Abgenix, visit the company's website at www.abgenix.com. |
