PPD And Axys Pharmaceuticals Form Pharmacogenomics Joint Venture Creating
The Largest Global Pharmacogenomics Services And Products Organization
SOUTH SAN FRANCISCO, Calif., and WILMINGTON, N.C., Feb. 2 /PRNewswire/ -- Axys Pharmaceuticals, Inc. (Nasdaq: AXPH - news) and PPD, Inc. (PPD) (Nasdaq:
PPDI - news) announced today the formation of PPGx, Inc., a global organization that provides comprehensive pharmacogenomics products and services to pharmaceutical
and biotechnology companies. Pharmacogenomics is the use of genetic information to predict the safety, toxicity and/or efficacy of drugs in individual patients or groups of
patients. Pharmacogenomics is becoming widely adopted as an essential drug discovery and development tool and increasingly important as part of an individual's
diagnosis and treatment regimen.
As part of the agreement, PPD's pharmacogenetics subsidiaries, Intek Labs, Inc. and Intek Labs Ltd., have been absorbed into PPGx, adding their technologies and
expertise in genotyping, phenotyping, and large-scale DNA purification and archiving. PPD will also provide staff and bioinformatics services and products from its former
informatics subsidiary, Belmont Research, to PPGx. PPD will provide initial funding for PPGx, receive exclusive marketing rights to PPGx pharmacogenomics products and
services, and hold a minority ownership position in the new company with options to increase its ownership share of PPGx.
Axys has licensed to PPGx its pharmacogenomics intellectual property, proprietary bioinformatics software and its Allele Frequency Database, a proprietary database
comprised of information on polymorphisms in pharmaceutically relevant genes. Axys will receive an upfront licensing fee and a majority ownership of PPGx. The
transaction places an initial valuation for PPGx in excess of $60 million.
PPD will market a comprehensive package of PPGx pharmacogenomics services and products to pharmaceutical and biotechnology companies, including polymorphism
(gene variant) identification and characterization, genotyping and phenotyping, DNA banking, gene-based clinical diagnostics, and clinical genetic informatics data
warehouse and analysis tools for correlating gene variants and clinical outcomes. PPD will also make PPGx's Allele Frequency Database available on a subscription basis
to pharmaceutical and biotechnology companies seeking information about polymorphisms that influence drug effects. This database includes easy-to-use tools for
designing and evaluating gene- based clinical trials.
N. Jean Warner, M.D., currently vice president of medical affairs for Axys, will serve as chief executive officer of PPGx., which will be headquartered in La Jolla, CA. ''PPGx
offers world-class pharmacogenomics capabilities in both drug discovery and development,'' commented Dr. Warner. ''We expect that the combination of existing
technologies, tools and consulting expertise from our two founding companies as well as new technologies to be developed by PPGx will meet client pharmacogenomics
needs from A to Z. Our goal is to be a solutions provider in the market and the best in class in pharmacogenomics.''
''With the addition of Intek Labs in 1997, PPD took the leadership position in the CRO industry by integrating pharmacogenetics into its worldwide clinical development
services. Over the past year, our clients have begun to recognize the value and impact of pharmacogenetics on drug development,'' stated Fred Eshelman, chief executive
officer for PPD. ''Forming this joint venture with Axys is the logical next step for PPD in that it allows us to offer, on an exclusive basis, a complete pharmacogenomics
program that will stay ahead of the rapidly expanding research and development needs of our clients. Our clients will be able to access individual pharmacogenomics
services and products at any stage in drug development or contract for a complete turnkey pharmacogenomics program.''
John Walker, Axys' chairman and chief executive officer, stated, ''Our joint venture with PPD offers a tremendous opportunity to be the first, and the best, at providing
overall pharmacogenomics services to the market. When we acquired Sequana at the beginning of last year, it was our belief that one of the most obvious applications of
its technology platform was to address this new market by offering services in clinical studies and to use the information critical to accomplishing the goal of providing the
right drug to the right patient. PPGx hits the ground running with in-place capabilities, experienced personnel and revenue. Dr. Warner's stated goal to become a
'world-class provider of solutions' is one we enthusiastically share.''
Axys Pharmaceuticals is a leader in the integration of life science technologies with a focus on transforming gene discoveries into drugs. The company has research
collaborations with world-class pharmaceutical companies, covering a broad range of therapeutic areas, including respiratory, cardiovascular, and infectious disease, as
well as oncology and central nervous system disorders.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties which could cause Axys'
actual results to differ materially from those discussed here, including the risk that clinical trials will not proceed as anticipated or may not be successful, the risk of Axys'
early stage of development, Axys' reliance on the efforts of its collaborative partners, the risk that Axys' collaborations will not be successful, the risk that Axys will not be
successful in entering into new collaborations, competition, the risk of unexpected difficulties and delays in the development of new technologies, and general economic
conditions that may affect Axys' actual results and developments. Additional factors that could cause or contribute to such differences include, but are not limited to, those
discussed in the sections entitled ''Business'' and ''Additional Risk Factors'' in the company's SEC Reports, including the company's report on Form 10-K for the fiscal
year ended December 31, 1997.
PPD, Inc. (PPD) is a world-leading provider of contract and consulting research and development services for pharmaceutical and biotechnology companies. With a
corporate mission to provide services that maximize the return on clients' massive R&D investments, PPD offers innovative technologies and comprehensive services for
drug discovery, clinical development and post- market. The company employs more than 2,800 professionals in 44 offices in 18 countries around the world.
Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions about the value of this collaboration,
contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. Although PPD has used best efforts to be accurate in making
those forward-looking statements, it is possible that the assumptions made by management may not materialize. In addition, other important factors which could cause
results to differ materially include the following: economic conditions in the pharmaceutical and biotechnology industries; outsourcing trends in the pharmaceutical and
biotechnology industries; risks associated with acquisitions, loss of large contracts; competition within the CRO and pharmaceutical industries; continued success in sales
growth; the ability to attract and retain key personnel; and the risk factors set forth from time to time in the Company's SEC filings, copies of which are available upon
request from the investor relations department. For more information on PPD, Inc., simply dial 1-800-PRO-INFO and enter the Company code PPDI.
SOURCE: PPD, Inc.; Axys Pharmaceuticals, Inc. |
