Alliance Expected to Create DNAPrint's First Substantial Revenue Stream; Alliance with GenoMed Creates New Revenue Stream and Enhanced Genotyping Capabilities
SARASOTA, Fla.--(BUSINESS WIRE)--March 6, 2002--DNAPrint genomics, Inc. (OTCBB:DNAP) announced today that it has entered into a commercial and equity-based agreement with GenoMed, Inc. (Pink Sheets:GMED) that has upgraded DNAPrint's facility for the provision of genotyping services. The agreement is expected to provide DNAPrint annual revenues in excess of $1.6 million.
Under the agreement, GenoMed has purchased a beta version of an Orchid Ultra-High Throughput (UHT) genotyping system and has integrated it with DNAPrint's existing Orchid 25K SNPstream platform. With the integration, DNAPrint becomes GenoMed's exclusive genotyping contractor. The integration establishes the first commercially licensed UHT facility operating Orchid technology in the world, and provides DNAPrint a faster and less expensive platform for its own research and product development. In addition, the new platform establishes DNAPrint as one of only a handful of companies in the world capable of scoring more than 100,000 genotypes per eight-hour shift.
The initial term of the contract is two years, but it automatically renews every two years thereafter in order to sensitively determine the price per genotype that GenoMed pays DNAPrint. The contract calls for DNAPrint to produce over 4 million genotypes for GenoMed in the first year at a cost of approximately $1.6 million. The larger scope of the agreement establishes DNAPrint and GenoMed as long-term participants in a joint commercial genotyping venture. Third party revenues from this venture will be shared between DNAPrint and GenoMed through undisclosed terms.
As part of the deal, DNAPrint obtained a royalty stake in future GenoMed profitability.
"This agreement is a tremendous achievement for our company and our investors," said Tony Frudakis, PhD, CEO and CSO of DNAPrint genomics, Inc. "In addition to securing a revenue stream that we hope will be substantial and consistent, we have acquired a more advanced genotyping platform for our research, and we have joined GenoMed's mission to apply medical genomics to the practice of medicine."
GenoMed's screen of the human genome is expected to result in the identification of novel therapeutic targets for common, complex human diseases and could help pharmaceutical companies develop new, highly specific drugs and find new uses and indications for existing therapies.
"The integrated genotyping resources will allow GenoMed to significantly expand the pace of our search for disease gene targets at a fraction of what it would have cost us to operate independently," said David Moskowitz, MD, Chairman of GenoMed, Inc.
About DNAPrint genomics, Inc.
DNAPrint genomics Inc. was founded by a team of scientists with research and commercial experience in high-level mathematical and statistical modeling, programming and molecular genetics. Our quest is to become the leader in the development of complex pharmacogenomics classifiers for a personalization of drug prescription. The Company is traded on the NASDAQ OTC Bulletin Board under the ticker symbol: DNAP. For more information about the company, please visit dnaprint.com.
About Genomed, Inc.
GenoMed is an early stage bioinformatics company based in St. Louis, Missouri. GenoMed is traded publicly under the stock ticker symbol GMED. GenoMed is working to apply medical genomics (the study of how genes function in the cause, progression and treatment of disease) to the development of new treatments, the better use of existing therapies and the creation of more accurate gene-based tests for known diseases. GenoMed creates revenue through licensing and/or collecting royalties from drug discovery, from the optimization of existing therapies and from gene-based diagnostic tests. For more information about GenoMed, please visit genomedics.com.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act as amended. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of DNAPrint's products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation. DNAPrint genomics, Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in DNAPrint's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.
CONTACT: DNAPrint genomics, Inc., Sarasota
Investor Contact: Carrie Castillo, 941/366-3400
ccastillo@dnaprint.com
or
Media Contact: Russell LaMontagne, 212/219-0800
russell@corinthgroup.com |
