SEATTLE, and PRINCETON, N.J., May 23 /PRNewswire-FirstCall/ -- Medarex Inc. (Nasdaq: MEDX - News) and Corixa Corp. (Nasdaq: CRXA - News) today announced that Medarex has acquired Corixa's proprietary Ultra-Potent Toxin technology for creating antibody-toxin conjugates and certain preclinical product development programs in the field of oncology and other disease indications. In return, Corixa will receive $21 million, payable at Medarex's option in cash or shares of Medarex stock, in six equal monthly payments. Medarex also purchased certain equipment to support Medarex's continuing research efforts from Corixa for an additional $2.5 million.
Under the terms of the agreement, Medarex will acquire from Corixa:
-- Ultra Potent Toxins (UPT) program in which certain toxins can be
linked to monoclonal antibodies. These toxins include patented small
molecules known as duocarmycins, which have been designed to overcome
multi-drug resistance;
-- IFNAR1 program, a monoclonal antibody-based program to develop
products to inhibit the biological activity of Type I Interferons;
-- Three monoclonal antibody targets; and
-- Tumor Activated Pro-drug (TAP) program, including CPI-0004, a
preclinical stage chemotherapeutic drug for the treatment of solid
tumor cancers.
As part of the transaction, Medarex will provide Corixa with a license to use the UPTs with certain monoclonal antibodies, pursuant to which Medarex may receive milestone payments and royalties.
"We believe this is a win-win transaction for both companies in that we were able to leverage our existing partnership and antibody development synergies in a mutually beneficial way," said Steven Gillis, Ph.D., Chairman and Chief Executive Officer at Corixa. "This transaction will allow us to focus our resources on Corixa's core immunotherapeutics while furthering the development of transferred technologies with one of the leaders in human antibody-based therapeutics."
"We believe that Ultra-Potent Toxins will become the gold standard for monoclonal antibody 'smart bombs'," said Donald L. Drakeman, Ph.D., President and Chief Executive Officer of Medarex. "Together with the monoclonal antibody and oncology development programs, we expect that the UPT technology will enable Medarex to design and develop important new products for the treatment of cancer and other life-threatening diseases."
In connection with this transaction, approximately 30 Corixa scientists based in South San Francisco will join Medarex's California-based research and development group. This team includes highly experienced antibody-toxin experts. Medarex has also agreed to sublease from Corixa approximately 30,000 square feet of laboratory and office space at Corixa's South San Francisco 650 Gateway Blvd. facility, subject to customary conditions.
Medarex and Corixa will publicly discuss this transaction on Friday, May 24:
Corixa will hold a conference call on May 24, 2002 at 8:30 a.m. EDT to discuss today's announcement. To participate in the conference call, participants should dial 800-289-0496 (international dial 913-981-5519). A replay of the conference call will be available from 11:30 a.m. EDT May 24th through midnight May 28th. To access the replay, please dial 888-203-1112 (international dial 719-457-0820), and enter passcode 366160. Or you can visit the investors section of Corixa's website at www.corixa.com.
Medarex will hold a conference call on May 24, 2002 at 9:30 a.m. EDT to discuss today's announcement. To participate in the conference call, participants should dial 800-360-9865 (international dial 973-694-6836). A replay of the conference call will be available until midnight EDT, June 7, 2002. To access the replay, please dial 800-428-6051 within the U.S. or 973-709-2089 outside the U.S., and enter passcode 244057. |
