So are they or aren't they going forward with hemophilia and HIV programs? Does this mean they will try to sell their interest to their partners?
>>SAN DIEGO, and ATLANTA, Nov. 14 /PRNewswire-FirstCall/ -- GenStar Therapeutics Corporation (Amex: GNT - News) announced today that it is restructuring its operations to reduce expenses and concentrate its resources on the later stage cardiovascular products that will be the focus of the company following completion of the planned merger with Vascular Genetics Inc. (VGI). GenStar and Vascular Genetics also announced that they intend to enter into a services agreement for the VEGF-2 product for refractory angina that will be the lead product of the merged company. Separately, GenStar announced financial results for the third quarter of 2002.
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The merger between Vascular Genetics and GenStar is expected to be completed during the first quarter of 2003. It is anticipated that the name of the combined organization will be CorAutus Genetics Inc.
In anticipation of the merger, GenStar will be concentrating its resources on lead product development programs for the VEGF-2 cardiovascular disease products of its merger partner, Vascular Genetics. VEGF-2, a promising gene- based therapy for the treatment of severe cardiovascular disease and angina, will be the key focus of the combined organization's development efforts. The combined organization plans to initiate late stage clinical testing in patients with refractory angina that is inadequately treated by conventional therapies.
As part of these operational changes, GenStar Therapeutics has reduced its research and administrative staff by approximately 30 percent. Prior to the reduction, GenStar Therapeutics employed approximately 45 individuals. GenStar also plans to consolidate all of its current operations into its Barnes Canyon facility, which currently houses its manufacturing operations, and then sublet its executive administrative and laboratory space, as well as implement certain other cost containment initiatives. GenStar believes that these changes will reduce its cash expenditures by approximately $200,000 per month.
"We believe that the most appropriate strategy at this time is to focus our resources on the VEGF-2 cardiovascular product that has progressed to later stage clinical development", stated Robert E. Sobol M.D. Chief Executive Officer of GenStar.
Vascular Genetics and GenStar plan to enter into a services agreement to further develop the VEGF-2 products, which treat serious cardiovascular disease. "This agreement should accelerate the development of the VEGF-2 product and facilitate the integration of the merged companies," stated Richard E. Otto, President and Chief Executive Officer of Vascular Genetics.
About Vascular Genetics
Vascular Genetics Inc. was founded in 1997 to develop the pioneering research of the late Dr. Jeffery M. Isner, utilizing gene therapy for the treatment of severe cardiovascular disease. VGI believes that successful development of VEGF-2 applications to treat critical ischemic diseases of the heart and peripheral vascular systems will position it as an industry leader in the cardiovascular therapeutics market.
About GenStar
GenStar Therapeutics is a biopharmaceutical company that since 1995 has been developing innovative gene therapy products for the treatment of serious medical disorders. The company's research and development efforts, utilizing advanced gene delivery technologies, have focused on hemophilia, cancer and vaccines. The Company has research agreements with Baxter Healthcare and Centocor, a Johnson & Johnson company. GenStar's hemophilia, prostate cancer and HIV/AIDS product development programs are supported, in part, by grants from the National Cancer Institute and the National Institutes of Health.<<
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Cheers, Tuck |
