Cambridge Antibody Technology and Genzyme Corporation Strengthen Collaboration
Monday September 22, 2:00 am ET
Genzyme Making 22.9 Million Pounds Sterling Equity Investment in CAT
CAMBRIDGE, England, and CAMBRIDGE, Mass., Sept. 22 /PRNewswire-FirstCall/ -- Cambridge Antibody Technology (Nasdaq: CATG - News; LSE: CAT - News) and Genzyme Corporation (Nasdaq: GENZ - News) today announce a significant strengthening and enhancement of their broad strategic alliance for the development and commercialisation of human monoclonal antibodies directed against TGF-beta.
Under an amended collaboration agreement, CAT, through its wholly-owned subsidiary Aptein, has increased its commitment to the programme by agreeing to fund fifty per cent of programme costs through to early 2006. CAT will receive an additional credit in the formula by which profits arising from the programme are apportioned between the parties, which significantly enhances CAT's position with respect to its share of profits from the programme. This agreement also amends the rights of the parties in the event of a 'change of control', giving the party not subject to the change of control the right to purchase the other's interest in the programme for fair value.
Separately, Genzyme is making a further equity investment in CAT of approximately 22.9 million pounds through a cash purchase of 4.3 million shares. This purchase is to be effected in two tranches; an initial purchase of 1.8 million shares and a second purchase (which requires the approval of CAT shareholders) of 2.5 million shares.
Genzyme already holds 307,982 shares in CAT which were subscribed at the time of entering into the initial collaboration in September 2000; following these further subscriptions Genzyme will hold approximately 11 per cent of the enlarged issued share capital of CAT.
Henri A Termeer, chairman and chief executive of Genzyme, said, "This transaction reinforces our commitment to an exciting and very promising programme and also demonstrates our commitment to CAT, whom we value highly as a development partner. This programme is an integral component of our focus on developing therapies for immune-mediated diseases, and we are pleased to be strengthening our relationship with CAT."
Peter Chambre, chief executive of CAT, said "We are delighted to strengthen our commitment with Genzyme to the collaboration in anti TGF-beta antibodies. In the three years that CAT and Genzyme have worked together, our mutual belief in the size of the potential opportunity has grown substantially, as has the breadth of the programme. Today's agreement enables both companies to take advantage of this growing opportunity. We welcome Genzyme's investment in CAT as a sign of their commitment to the collaboration."
Genzyme and CAT (through Aptein) entered into their original strategic alliance in September 2000. The collaboration covers all clinical indications with the exception of ophthalmic uses. Significant progress has been made over the last three years. A Phase I/II clinical trial of CAT-192 (an anti-TGF-beta1 human monoclonal antibody) as a potential treatment for diffuse systemic sclerosis (scleroderma) has been completed and initial results from this clinical trial are expected in the fourth quarter of this year. In addition, the GC1000 series of pan specific anti-TGF-beta human monoclonal antibodies has been developed and it is expected that a first IND will be filed with the US Food and Drug Administration in the fourth quarter of 2003 to initiate clinical trials in idiopathic pulmonary fibrosis with GC-1008, one of this antibody series. It is anticipated that trials of the GC1000 series in other indications will follow.
Application will be made to the UK Listing Authority and the London Stock Exchange for the shares to be issued to Genzyme to be admitted to the Official List and to trading on the London Stock Exchange's market for listed securities. It is expected that admission of the initial purchase of 1.8 million shares will become effective and dealings in them commence on 25 September 2003. A circular to CAT shareholders seeking approval for the disapplication of pre-emption rights for the second subscription of 2.5 million shares will be posted shortly.... |
