Geron gave its shareholders a nice holiday gift today
(12/23), as the stock jumped 2-5/8 to 11-1/2 on the announcement
that it signed a collaboration agreement with Pharmacia &
Upjohn. In my post on this board a few days ago, following the
issuance of two significant patents to Geron, I predicted that
these patents would boost the company's chances to obtain a
major collaboration "agreement in the near future." But I have
to admit, I didn't think it'd happen so soon. The fit with
Pharmacia & Upjohn seems excellent and in my view Geron's stock
has a lot more upside to go.
The press release announcing the agreement is below.
For more info on Geron, check out my prior posts on this
board and call the company at 415-473-7700 for an investor
packet.
Geron and Pharmacia & Upjohn To Collaborate On New Class Of
Anticancer Drugs; Collaboration Focuses On Telomerase
Inhibition Therapy
MENLO PARK, Calif.--(BUSINESS WIRE)--Dec. 23, 1996--Geron
Corporation (NASDAQ:GERN) today announced that it has signed a
Heads of Agreement with Pharmacia & Upjohn to collaborate in the
discovery, development and commercialization of a new class of
anticancer drugs.
The Heads of Agreement, which is non-binding, states that
Geron and Pharmacia & Upjohn will use their best efforts to
complete negotiations of a definitive agreement. The companies
have also signed a Stock Purchase Agreement which provides for
an initial equity investment of $2 million in Geron by Pharmacia
& Upjohn. The definitive agreement will also include provisions
for additional equity, research support and milestone payments.
Geron will also receive royalties on sales and U.S. co-promotion
rights.
The collaboration covers a class of anticancer drugs that
inhibit telomerase, an enzyme highly associated with cancer in
humans. The enzyme exhibits an essential genetic function for
maintaining cancer cell immortality, making it a promising
target for cancer diagnostics and therapeutics.
The collaboration with Pharmacia & Upjohn strategically and
financially complements Geron's existing alliance, which was a
$30 million transaction with Kyowa Hakko Kogyo Co., Ltd., a
leading oncology company in Japan.
"Telomerase is an interesting target for the development of
new therapeutics with the potential for substantially improved
specificity and efficacy in many different types of cancer,"
stated Terje Kalland, Pharmacia & Upjohn Oncology vice
president. "This strategic partnership indicates Pharmacia &
Upjohn's commitment to enhancing its position as a worldwide
leader in the cancer field."
According to Ronald W. Eastman, president and chief executive
officer of Geron, "The alliance with one of the world's leading
oncology companies brings important resources to Geron's
telomerase inhibition program. Pharmacia & Upjohn's substantial
experience in the development and commercialization of oncology
drugs will be valuable in our collaboration to establish
telomerase inhibition as a new approach to cancer treatment."
Pharmacia & Upjohn, Inc., is a research-based pharmaceutically
focused company dedicated to helping people around the world
live longer and fuller lives. The company was formed through a
merger of Pharmacia AB and The Upjohn Company and began
operating in November 1995. Pharmacia & Upjohn is a provider of
human health care products and related products, and operates on
a global basis. The company has a corporate management center in
London and major research and manufacturing centers in the
United States, Sweden and Italy.
Geron Corporation is a biopharmaceutical company exclusively
focused on discovering and developing therapeutic and diagnostic
products based upon fundamental biological mechanisms underlying
cancer and other age-related diseases.
This press release may contain forward-looking statements
which are subject to change. Actual results may differ
materially from those described in any forward-looking
statements. Additional information on potential factors that
could affect the company's financial results are included in the
company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 1996.
CONTACT: Geron Corporation, David Greenwood, 415/473-7700 or
StratiPoint Group (Media Inquiries), Mike Jackman, 415/388-3216,
Carole Melis, 415/326-0420 or Burns McClellan (Investor
Inquiries), Lisa Burns or John Nugent, 212/505-1919. |
