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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (847)	3/16/2000 11:48:00 AM
From: Greg Jung	Read Replies (1) \| Respond to of 52153

<But where is their business plan? How are they actually going to make money?> For all, the current business plan is to issue stock and keep exciting news flowing (eerily the same as for internets) until Something Big happens. What is a gene patent, anyway? Nobody can simply lock up a patent for indeterminate uses of scientific discovery. If that is the type of proprietary lockup expected in the market caps of incy and hgsi, then they will continue to fall as that is what is explicitly negated. OTOH what did Vical get when it licensed naked DNA delivery for "three genes" from hgsi's proprietary database. ROCKVILLE, Md., SAN DIEGO, and TRIANGLE PARK, N.C., Feb. 25 /PRNewswire/ -- Human Genome Sciences, Inc. (Nasdaq: HGSI - news), Vical Incorporated (Nasdaq: VICL - news), and Vascular Genetics Inc. (VGI) announced today that they have entered into an agreement to speed the development of novel genes as pharmaceutical products to treat or prevent a number of diseases. These potential products would use Vical's patented naked DNA delivery technology and novel genes within HGS' proprietary database, with initial product development at VGI. Vical and HGS have signed a reciprocal royalty-bearing license. Under the agreement, Vical has the option to exclusively license up to three genes from the HGS proprietary genomics database for gene-based product development. HGS has the option to license Vical's patented naked DNA gene delivery technology for use in up to three gene-based products. In addition, Vical is granting an exclusive, royalty-bearing license to VGI for naked DNA delivery of Vascular Endothelial Growth Factor-2 (VEGF-2). VGI, a privately held company in which HGS is a major shareholder, has initiated clinical trials using naked DNA delivery of the VEGF-2 gene to promote angiogenesis in patients with coronary artery disease and critical limb ischemia. In exchange, Vical will receive a minority equity interest in VGI. ``We are delighted to collaborate with Vical in applying our considerable genomics database in the development of DNA-based pharmaceutical products. In reviewing the various methods available to deliver our patented gene sequences, we determined that Vical's naked DNA approach provides broad applicability and potent expression levels. We are pleased to secure access to this gene delivery technology,' said William A. Haseltine, Ph.D., Chairman and Chief Executive Officer of Human Genome Sciences. ``We have identified the potential value in combining gene discovery and gene delivery,' said Alain B. Schreiber, M.D., President and Chief Executive Officer of Vical, ``and we are pleased to enter into this strategic 'genes-to- drugs' collaboration with an industry leader in the genomics revolution. The expansive patent position of Human Genome Sciences and VGI's pioneering work in gene-based cardiovascular therapy provide excellent product pipeline growth opportunities for Vical.' ``Vascular Genetics is pleased to collaborate with Vical to develop a novel treatment option for cardiovascular patients,' said John Cumming, President and Chief Executive Officer of Vascular Genetics. ``By securing access to Vical's patented naked DNA technology, we have gained the freedom to develop and market products based on our encouraging work in angiogenesis.'