| Rockville (MD) and Strasbourg, France — March 2, 1998 — Human Genome Sciences, Inc. (NASDAQ: HGSI) and TRANSGENE today announced that they have signed an agreement to accelerate the development of novel gene therapy drugs. This collaboration will combine HGSI's worldwide standing in genomics with TRANSGENE's broad technology platform of gene delivery systems. |   |
The agreement covers a ten year program with HGSI and TRANSGENE working together to identify, from HGSI database, novel genes of potential interest for gene therapy. TRANSGENE will have the right to exclusively license, and sublicense, up to 10 genes and to develop, manufacture and commercialize any resulting gene therapy products worldwide. The two companies may also choose to co-develop and co-market the identified new gene therapy products, and, in such case, commercialization rights will be held by HGSI for North America and by TRANSGENE for Europe, and will be shared equally for the rest of the world's markets.
Under the terms and conditions of the agreement, HGSI will take a 10 percent interest in TRANSGENE's equity. TRANSGENE will pay an initial licensing fee and research funding in an amount equal to the proceeds to TRANSGENE from the HGSI purchase. Additional payments to HGSI are dependent upon the number of genes which TRANSGENE licenses and the accomplishment of certain milestones. Royalties on future product sales and partnering revenues will be paid by TRANSGENE to HGSI. On co-marketed products, HGSI and TRANSGENE will pay reciprocal royalties.
"We are very pleased to enter into a collaboration with TRANSGENE to develop novel gene delivery products said William A. Haseltine, Ph.D., Chairman and Chief Executive Officer of HGSI. We hope our combined efforts will open a second wave of gene therapy products for the treatment and possible cure of a wide variety of human diseases."
Since its founding, HGSI scientists have rapidly discovered human genes. At the current time, Company scientists believe that they have identified 95 percent of all human genes. In addition, the Company believes that it has full-length copies of approximately 70 to 80 percent of all expressed human genes. HGSI scientists are systematically reviewing several thousand novel genes to determine their medical utility. HGSI holds the rights to the genes it discovers.
"This collaboration will give TRANSGENE a tremendous opportunity to fill its future product pipeline and is another demonstration of the promise of its broad gene delivery platform said Bernard Gilly, President and Chief Executive Officer of TRANSGENE. We are delighted to team up with the premier genomics company, and strongly believe that based on the quality of both management teams and the mutual professional respect of the scientists, we can create a strong foundation to build upon the synergies between genomics and gene therapy."
Successful development of gene therapy products is dependent on two key elements: the identification of critical genes that provide a therapeutic function and an effective way to deliver and express these genes in specific target cells. TRANSGENE has developed a broad range of proprietary gene delivery systems designed to be used efficiently and safely in a number of specific applications.
Human Genome Sciences is a company whose mission is to develop products to predict, prevent, detect, treat and cure disease based on its leadership in the discovery and understanding of human and microbial genes. HGS and Human Genome Sciences are registered trademarks of Human Genome Sciences, Inc.
TRANSGENE, based in Strasbourg, France, is an integrated biotechnology company dedicated to the discovery and development of gene therapy technologies and products for the treatment of acquired or inherited diseases for which there is no cure or adequate therapy at present. Its proprietary technology platform includes adenoviral, vaccinia viral, retroviral, cellular and a range of synthetic vectors for gene delivery. Three of these vector families are currently in clinical development for several disease applications. TRANSGENE expects its programs against melanoma and breast cancer to begin Phase II clinical trials in the first quarter of 1998. Additional disease targets for TRANSGENE's gene therapy delivery systems include cystic fibrosis (Phase I completed), muscular dystrophy and cardiovascular diseases.
Source: Transgène
