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Biotech / Medical : Tularik Inc. (TLRK)
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To: scaram(o)uche who wrote (200)5/17/2002 7:50:46 PM
From: scaram(o)uche   of 598
 
from the 10-K.....

Virtual screening is the process by which computers calculate the theoretical binding affinity between a very large number of possible chemical structures and the active site of cellular receptors or enzymes for which the molecular structure has been solved. We added virtual screening to our capabilities in July 2001 with the acquisition of the computer-aided molecular design (CAMD) unit of Protherics PLC, now known as Tularik Ltd. Through this transaction, we acquired proprietary computational chemistry software and a team of experienced software designers, as well as computational chemists and medicinal chemists. The key aspect of the CAMD technology is a set of proprietary computational software tools that facilitate the identification of novel compounds. The use of virtual screening to complement our high-throughput screening capabilities may accelerate the discovery of high-quality leads against our validated targets. As part of the acquisition of the CAMD

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13 2 Screening Library

unit, we inherited a research collaboration with Eli Lilly relating to anti-thrombotics. The research portion of the Eli Lilly collaboration concluded in December 2001, however Eli Lilly is progressing a compound with activity against Factor Xa through its pre-clinical development process. In addition to the success milestone payment received in November 2001, we are entitled to additional payments for Factor Xa inhibitors as they progress through clinical trials to registration. Royalties are payable from Eli Lilly on sales of products emerging from the collaboration.
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