Dont have the answer, all the details of the cross
licensing and investment in Modex are muddled, at
least to me...but I'll at least paste what is in
the annual report regarding both:
CTI owns ~17% of Modex. Aebischer is director of
the Gene Therapy Center at Centre Hospitalier
Universitaire Vaudois, Lausanne, Switzerland and
Prof. Biomaterials, Brown University. He is also
Professor of the Swiss Polytechnical School in Lausanne.
He is Chairman of the Board of Modex.
I know that does not answer anything yet...
also from the annual:
To date, the Company's principal academic collaborations have been with Brown University and Dr. Aebischer and Centre Hospitalier Universitaire Vaudois in Switzerland. Research and development expenses incurred under these collaborations amounted to approximately $1,259,000, $1,326,000, and $1,337,000 for the years ended December 31, 1998, 1997 and 1996, respectively.
And the details on Modex:
In October 1997, the Company completed a series of transactions which resulted in the establishment of its previously 50%-owned Swiss subsidiary, Modex Therapeutiques, SA, as an independent company. In the transactions, the Company reduced its ownership interest from 50% to approximately 25% in exchange for $4 million cash and elimination of its prior contingent obligation to contribute an additional Sfr 2.4 million (approximately $1.7 million) to Modex in July 1998. In the transactions, all of the put and call arrangements between the Company and other stockholders of Modex were eliminated and the Company forgave $463,000 due from Modex to the Company. The Company recorded a gain on the transaction of $3,387,000. In April 1998, Modex completed a financing, in which the Company elected not to participate, which resulted in a further reduction of its ownership interest to less than 20%.
The Company and Modex also modified the terms of their existing royalty-bearing Cross License Agreement to (i) expand the field in which Modex is exclusively licensed to apply the Company's proprietary encapsulated cell technology to include, in addition to the original field of diabetes, obesity and anemia, the treatment of hemophilia A and B utilizing Factor VIII and/or Factor IX and two additional applications to be agreed to by the Company and Modex; (ii) eliminate the requirement to make future milestone payments to Modex of up to 300,000 shares of the Company's Common Stock; (iii) limit the scope of the Company's technology licensed to Modex to existing and future encapsulation technology; and (iv) specify the terms under which the Company will manufacture any products Modex may develop based on the Company's technology and grant Modex an option to manufacture or have manufactured such products on payment of a higher royalty. The Cross License Agreement continues to provide for the payment of royalties from Modex to the Company on the sale of any licensed products. The revised agreement similarly limits the scope of the Modex technology exclusively licensed, on a royalty-bearing basis, to the Company for the application of diseases, conditions and disorders of the central nervous system to existing and future encapsulation technology and certain additional existing technology. In addition to their purchase of Modex Common Stock from the Company, the investors participating in the transaction invested $1.6 million directly in Modex. |
