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Biotech / Medical : Cambridge Antibody Technology Group -- Ignore unavailable to you. Want to Upgrade?

To: dalroi who wrote (398)	9/22/2003 6:55:49 AM
From: nigel bates	Read Replies (1) \| Respond to of 625

Sounds to me as if DYAX isn't going to get royalties on Humira, period. (Unless Dyax is the third party whose royalties Abbott is trying to offset against royalties due to CAT, and this agreement somehow nullifies that possibility, but Dyax may still pursue Abbott for royalties... seems pretty farfetched to me).

To: dalroi who wrote (398)	9/22/2003 7:02:23 AM
From: nigel bates	Respond to of 625

Reuters report which seems to draw the same conclusions. (One other thing that concerns me - could GENX buy CAT ? That would be very upsetting. Or would the terms of the partnership deal prohibit that ?) UK biotech firm CAT rejigs Genzyme research deal LONDON, Sept 22 (Reuters) - Britain's Cambridge Antibody Technology Group Plc said on Monday it had reached a deal with Genzyme Corp (NASDAQ: GENZ - news) to give it a bigger share of any profits from a research collaboration, boosting its shares. Chief Executive Peter Chambre told Reuters that CAT had agreed to invest more than 20 million pounds ($33 million) over the next two years into the collaboration, which is aimed at developing drugs to treat fibrotic diseases, or illnesses caused by thickening of skin or internal organs. In return, CAT would get a greater, though undisclosed, share of any profits from resulting sales. Genzyme would also make a 22.9 million pound equity investment in CAT, giving it an 11 percent stake in the British biotechnology firm. In addition, the two firms clarified that if one of them were taken over, the other would have the right to buy the research collaboration. Analysts said this effectively protected Genzyme's investment from CAT falling prey to a bidder. Analysts welcomed the deal as a sign CAT was taking steps to avoid the fate of Humira, a rheumatoid arthritis drug it helped to develop with Abbott Laboratories Inc but on which, because of its much lower levels of investment, it only receives a low level of royalties. But they also said the deal also increased the importance of the collaboration to CAT and that the firm could be hit hard if Phase I/II clinical trials results of its leading drug candidate -- CAT 192 for scleroderma -- were not successful. Initial results are expected later this year. At 0945 GMT, CAT shares were up 1.9 percent at 550 pence. CAT also announced separate changes to a research deal with Dyax Corp (NASDAQ: DYAX - news) , which clarified that Dyax would not be entitled to royalties from Humira sales.