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Biotech / Medical : KDUS, who knows this company? -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (107)	8/22/1999 12:52:00 PM
From: scaram(o)uche	Read Replies (2) \| Respond to of 117

just parking an item from the 10-K.... seems like a possible fit with Axiom (although it looks like Axiom is going with Sklar and flow cytometry), does anyone know the status? This guy (Hunter IW) at M.I.T. doesn't exactly publish up a storm. (9) Sponsored Research and License Agreements In January 1998 and January 1999, the Company entered into sponsored research agreements with Massachusetts Institute of Technology ("M.I.T.") pursuant to which M.I.T. will use its expertise in micro-robotics to co-develop the LivingChip(TM), a novel drug F-14 <PAGE> CADUS PHARMACEUTICAL CORPORATION Notes to Financial Statements December 31, 1998, 1997 and 1996 discovery screening tool that would miniaturize and automate the Company's proprietary hybrid yeast cell technology. If developed, the LivingChip(TM) would ultimately accommodate at least 100,000 yeast-based drug discovery assays on a single CD-sized synthetic disc and would permit the testing of thousands of compounds on multiple assays at the individual scientist's lab bench. The Company provided M.I.T. with full research funding for 1998 and partial funding for 1999 and has the option to extend the arrangement through the remainder of 1999. The Company also entered into a license agreement with M.I.T. pursuant to which the Company obtained exclusive worldwide rights, for use in pharmaceutical, animal health and agricultural businesses, to the technology developed under the sponsored research arrangement. In order to maintain its exclusive license, the Company must provide M.I.T. with specified levels of research funding in 1998 and 1999 and make a minimum level of expenditures thereafter to commercialize the technology until the technology is commercialized. The Company is required to pay M.I.T. an annual license fee, royalties on the sale or lease of LivingChip(TM) systems, royalties on the sale of therapeutics and diagnostics developed using the LivingChip(TM), royalties on services rendered based on the LivingChip(TM), and an annual sublicense fee for each sublicense of the LivingChip(TM). The Company has entered into several other license and sponsored research agreements with various third parties. Generally, the agreements provide that the Company will make research payments and will pay license fees and/or maintenance payments, in return for the use of technology and information and the right to manufacture, use and sell future products. These agreements provide for payments based on the completion of milestone events, as well as royalty payments based upon a percentage of product or assay sales. License fees and maintenance payments, including payments made to M.I.T., for the years ended December 31, 1998, 1997 and 1996, amounted to approximately $2.0 million, $590,000 and $355,000, respectively.