Thanks Tuck,
I found it...CEGE owns ~60%.
Best of luck,
SS
>>>
CELL GENESYS LAUNCHES NEW CNS GENE THERAPY SUBSIDIARY THROUGH ACQUISITION OF NEUROLOGIC GENE THERAPEUTICS
Phase I Clinical Trial for Alzheimer's Disease Gene Therapy Under Way
FOSTER CITY, Calif., January 11, 2001ÛCell Genesys, Inc. (Nasdaq: CEGE) today announced that the company is launching a new subsidiary, Ceregene, Inc., which will focus on gene therapies for central nervous system (CNS) disorders such as Alzheimer's disease and Parkinson's disease. Ceregene is being formed through the acquisition of Neurologic Gene Therapeutics, a private San Diego-based start-up company. Cell Genesys will contribute $10 million to Ceregene together with access to technology and patents in the CNS gene therapy area, in exchange for approximately 60 percent ownership of the new company.
Ceregene is being launched with two key product development programs already under way as a result of the efforts of Neurologic Gene Therapeutics. These include both a Phase I clinical trial for Alzheimer's disease gene therapy, as well as successful preclinical studies for Parkinson's disease gene therapy. Ceregene's operations, which will be based in San Diego, Calif., are expected to expand significantly in 2001 following the recruiting of key personnel, including a chief executive officer. Neurologic Gene Therapeutics, which previously operated through limited private funding and research grants, was founded by a group of leading neuroscientists including Mark Tuszynski, M.D., Ph.D. and Armin Blesch, Ph.D. of the University of California, San Diego, and Jeffrey Kordower, Ph.D. of Rush Presbyterian-St. Lukes Medical Center in Chicago, all of whom will serve as scientific advisors to Ceregene. Cell Genesys will have majority representation on Ceregene's board and Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys, will serve as chairman.
"We are very excited about the prospects for our new subsidiary, Ceregene. We believe that launching Ceregene is the best way for Cell Genesys to maximize its assets in the CNS gene therapy area, and thereby create increased value for our company and its shareholders," stated Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys. "We believe that we have an excellent track record of creating shareholder value through spinouts, most notably the 1996 spinout of Abgenix, which has grown from a wholly-owned subsidiary of Cell Genesys to a Nasdaq 100 company in under five years."
Based on the encouraging preclinical data for CNS gene therapy recently published by both Cell Genesys and Neurologic Gene Therapeutics, Cell Genesys believes that there is significant potential for gene therapies to be effective in multiple disorders of the central nervous system. Given Cell Genesys' increasing focus on the development and commercialization of cancer vaccines and cancer gene therapies, launching a subsidiary for CNS gene therapy will allow Cell Genesys to fully leverage its resources, patents and technologies in a distinct area of therapeutic product development without decreasing the focus in its core business. Ceregene will not only benefit from access to the vast array of gene delivery technologies and patents of Cell Genesys but also the potential use of Cell Genesys' resources to acquire therapeutic genes relevant to the CNS gene therapy area. In addition, Ceregene is expected to receive operations and manufacturing support from Cell Genesys, which has recently added significantly to its manufacturing capabilities through the acquisition from Chiron Corporation of a GMP (Good Manufacturing Practices) manufacturing facility in San Diego, Calif. Longer term, Cell Genesys expects that Ceregene will emerge as an independent company with respect to both its financial and operational status.
Ceregene's Phase I clinical trial for Alzheimer's gene therapy, which began enrolling patients in 2000, is evaluating a patient-specific ex vivo treatment in which cells genetically modified to secrete nerve growth factor (NGF) are transplanted into specific regions of the brain which are known to deteriorate in Alzheimer's disease. In addition, Ceregene has obtained encouraging preclinical data for in vivo gene therapy (direct gene injection) in animal studies of both Alzheimer's disease and Parkinson's disease. In an October 2000 issue of the journal, Science, lentiviral-mediated gene therapy with glial-derived neurotrophic factor (GDNF) was reported to prevent the onset of nerve degeneration in a primate model of Parkinson's disease. In an earlier publication in a July 2000 issue of the journal, Neuroscience, a single adeno-associated viral (AAV)-mediated gene therapy treatment with GDNF was shown to restore nerve cell function in a rodent model of Parkinson's disease. Ceregene is planning to initiate in vivo gene therapy clinical trials for both Alzheimer's disease and Parkinson's disease within the next two years.
Cell Genesys is focused on the development and commercialization of cancer vaccines and gene therapies to treat major, life-threatening diseases. The company is conducting multicenter clinical trials for its GVAX® prostate cancer and lung cancer vaccines and expects to initiate additional GVAX® vaccine trials in these two cancers as well as pancreatic cancer, myeloma, and leukemia during 2001. Preclinical stage programs include gene therapies for cancer, hemophilia and cardiovascular disorders. Cell Genesys' majority-owned subsidiary, Ceregene, is focused on gene therapies for central nervous system disorders, and Cell Genesys' assets outside gene therapy include its approximately 10.5 percent ownership of Abgenix, Inc. and the company's licensing program in gene activation technology. For additional information, please visit the company's web site at www.cellgenesys.com.
Cell Genesys will be presenting at this week's JP Morgan Hambrecht & Quist Annual Healthcare Conference on Thursday, January 11, 2001 at 11:00 a.m. PST. The presentation will be webcast live and may be accessed through the Cell Genesys web site. |
