LA JOLLA, Calif.--(BUSINESS WIRE)--Nov. 3, 1997--Sequana
Therapeutics, Inc. (NASDAQ:SQNA) Monday announced that the company
and Glaxo Wellcome intend to renegotiate the terms of their strategic
alliance in the areas of diabetes and obesity in order to enable each
party to retain rights to certain independent potential gene
discoveries and to align the collaboration more closely with the
strategic needs and directions of both parties.
The existing collaboration, established in July 1994, aims to
discover genes associated with non-insulin dependent diabetes
mellitus (NIDDM). The agreement was expanded in February 1996 to
include the study of human obesity. In September 1997 the companies
announced that they had identified distinct regions of DNA which they
believe contain genes associated with NIDDM.
According to both companies, each is engaged in independent
research activities that may be deemed to overlap in the context of
the original agreement. Consequently, Sequana and Glaxo Wellcome
plan to explore modifications to the agreement that will establish
and define clearly each party's rights and obligations with respect
to the development and commercialization of potential products and to
discuss certain other potential changes.
"As Glaxo Wellcome and Sequana pursue the identification of gene
targets that play a role in susceptibility and/or onset of type II
Diabetes and Obesity, we want to ensure that our agreement with
Sequana adequately delineates each company's respective
responsibilities and rights," remarked Dr. Lee Babiss, Vice
President of Biological Sciences at Glaxo Wellcome.
"We believe that a modification of the existing agreement could
fit well with Sequana's gene-to-lead strategy," added Tim Harris,
Ph.D, senior vice president of research and development and chief
technical officer at Sequana. "As evidenced by our recently-
announced alliance with Parke-Davis, we intend to play a more active
role in the discovery of lead compounds, and where possible we would
prefer to incorporate our lead identification technologies into
existing relationships with the pharmaceutical industry."
Sequana Therapeutics, Inc. (NASDAQ: SQNA) is a leading genomics
company that uses industrial-scale gene discovery and functional
genomics technologies to develop products aimed at diagnosing and
treating common human diseases. Sequana has ongoing discovery
programs in asthma, diabetes, obesity, osteoporosis, schizophrenia
and manic depression, among other important disease areas, and has
scientific collaborations with several major pharmaceutical and
biotechnology companies worldwide. Sequana employs approximately 200
people at its headquarters in La Jolla, California and at its
subsidiary, NemaPharm, Inc., in Cambridge, Massachusetts.
Information about Sequana may be obtained on the World Wide Web at
sequana.com or by phoning (619) 452-6550.
Glaxo Wellcome Inc. (ISEL: GLX), based in Research Triangle
Park, NC, is the nation's leading research-based pharmaceutical firm.
A subsidiary of London-based Glaxo Wellcome plc, the company is
committed to fighting disease by bringing innovative medicines and
services to patients and to the healthcare providers who serve them.
The statements in this news release relating to the potential
discovery of disease genes, the subsequent development of products,
and the potential outcome of Sequana's and Glaxo Wellcome's
renegotiation talks are forward looking statements, which involve
risks and uncertainties, including Sequana's ability to utilize its
technologies to discover genes and to translate gene discoveries into
potential drug leads, the ability of the collaboration to develop and
commercialize therapeutic products, the continuation of the strategic
alliance between Sequana and Glaxo Wellcome, and the impact of
competitive gene discoveries, technologies and potential products.
For a discussion of the other risks and uncertainties potentially
affecting Sequana's business, see the company's Form 10-K for the
year ending December 31, 1996. Actual results and the timing of
certain events could differ materially from those indicated in the
forward looking statements as a result of these or other factors.
CONTACT: Sequana Therapeutics, Inc.
Scott Salka, VP Operations and CFO
619/646-8225, scott@sequana.com
or
Bob Giargiari, Investor Relations
619/646-8313, bob@sequana.com
KEYWORD: CALIFORNIA NORTH CAROLINA
INDUSTRY KEYWORD: MEDICINE BIOTECHNOLOGY PHARMACEUTICAL
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