Cell Genesys Licenses Gene Activation Intellectual Property to TKT for Certain Therapeutic Proteins
FOSTER CITY, Calif., June 10 /PRNewswire-FirstCall/ -- Cell Genesys, Inc. (Nasdaq: CEGE - News) today announced the completion of a worldwide licensing agreement under which Cell Genesys has exclusively licensed to Transkaryotic Therapies, Inc. (Nasdaq: TKTX - News) intellectual property relating to its gene activation technology for certain therapeutic proteins. In exchange, Cell Genesys will receive an up-front license fee of $26 million comprised of $11 million in cash and $15 million in shares of TKT common stock. In addition, Cell Genesys could receive additional payments upon the completion of certain patent-related milestones. Up to 15 proteins are included in the agreement for a variety of disorders including Fabry disease and Gaucher disease. No royalty payments will be made by TKT to Cell Genesys.
"We are pleased to make our gene activation intellectual property available to TKT, a company committed to bringing important therapeutic protein products to the market," stated Stephen A. Sherwin, M.D. chairman and chief executive officer of Cell Genesys. "This agreement is another example of how Cell Genesys can leverage its diversified business assets -- in this case technology outside of our core focus in cancer therapy -- to increase value for our stockholders."
Early in Cell Genesys' history, the company developed an approach to the production of therapeutic proteins which it referred to as "gene activation." Beginning in 1994, Cell Genesys has signed licensing agreements with companies using this technology to produce therapeutic protein products, an area not being pursued by Cell Genesys. These agreements, not including the TKT license agreement announced today, have brought in more than $25 million to date. One such license agreement in this area, signed in 1997, is with Aventis Pharmaceuticals for gene-activated erythropoietin (EPO). This agreement could provide Cell Genesys with future royalty payments on the sale of gene-activated EPO anywhere in the world.
Gene activation involves the insertion of genetic regulatory elements at specific sites in chromosomes in proximity to a human gene responsible for the expression of a therapeutic protein. Subsequently, the gene-activated protein can be produced in a cell-based production system. Gene activation is an alternative to the process of cloning human genes for the production of therapeutic proteins.
Cell Genesys is focused on the development and commercialization of innovative therapeutic products for cancer based on gene therapy technologies. The company is pursuing three cancer product platforms -- GVAX® cancer vaccines, oncolytic virus therapies and in vivo cancer gene therapies. Clinical trials of GVAX® vaccines are under way in lung cancer, prostate cancer, pancreatic cancer, leukemia and myeloma. Clinical trials of oncolytic virus therapies include CG7060 and CG7870 in prostate cancer. Preclinical stage programs include oncolytic virus therapies and gene therapies for multiple types of cancer. Cell Genesys' majority-owned subsidiary, Ceregene, is focused on gene therapies for neurologic disorders. Cell Genesys also continues to hold approximately nine million shares of common stock in its former subsidiary, Abgenix, an antibody products company. Cell Genesys is headquartered in Foster City, CA and has manufacturing operations in San Diego, CA, Hayward, CA and Memphis, TN. For additional information, please visit the company's website at www.cellgenesys.com.
Statements made herein about Cell Genesys and its subsidiaries, other than statements of historical fact, including statements about the progress and reports of clinical trials and progress and reports of preclinical programs, marketability and success of potential products and nature of product pipelines, licensing agreements and intellectual property are forward-looking statements and are subject to a number of uncertainties that could cause actual results to differ materially from the statements made, including risks associated with the success of research and development programs, the success and results of clinical trials, the regulatory approval process, competitive technologies and products, patents and additional financings. For information about these and other risks which may affect Cell Genesys, please see the company's Annual Report on Form 10-K dated April 1, 2002 as well as Cell Genesys' reports on Form 10-Q and 8-K and other reports filed from time to time with the Securities and Exchange Commission.
CONTACT: Jennifer Cook Williams, Associate Director, Corporate Communications of Cell Genesys, Inc., +1-650-425-4542.
SOURCE: Cell Genesys, Inc. |
