February
5, 1999
Genzyme Molecular Oncology
Receives $5 Million Milestone Payment Related To European Patent
Rights to p53 Tumor Suppressor Gene
February 5, 1999 /WiredBird/ Genzyme Molecular Oncology (Nasdaq:
GZMO) today announced the grant of a European patent covering p53
gene therapy and methods to detect loss of p53 function. The p53
gene functions as an important tumor suppressor gene which regulates
cell growth. In more than 50 percent of human cancers, the p53 gene
is functionally deficient.
The patent was granted to the Johns Hopkins University and originated
from the laboratory of Bert Vogelstein, M.D., at Johns Hopkins.
Genzyme Molecular Oncology obtained certain therapeutic and diagnostic
rights to the p53 gene through its 1997 acquisition of PharmaGenics,
Inc., a privately-held genomics company which had previously licensed
these rights from the Johns Hopkins University.
In turn, Genzyme Molecular Oncology licensed these p53 gene therapy
rights to Schering-Plough Corporation in October 1998.
The grant of this patent triggers a $5 million milestone payment
to Genzyme Molecular Oncology from Schering-Plough under the terms
of their October 1998 agreement. In October, Genzyme Molecular Oncology
received an up-front payment of $5 million dollars from Schering-Plough.
In addition to the $10 million received to date, Genzyme Molecular
Oncology has the potential to receive up to an additional $30 million
in patent, product development and sales milestone fees, in addition
to royalties on product sales associated with Schering-Plough痴
development and commercialization of a p53 gene therapy product.
"This milestone payment is an excellent example of our strategy
of leveraging our intellectual property to raise funds to invest
in our research and development efforts," said Gail Maderis, president
of Genzyme Molecular Oncology.
"Through our intellectual property, we are positioned to benefit
from the commercialization of p53, one of the leading gene therapy
cancer products in development. This strategy allows us to focus
on our programs in cancer vaccines and angiogenesis inhibitors while
gaining revenue to help support those efforts."
Schering-Plough and Genzyme Molecular Oncology have also been conducting
research with Genzyme Molecular Oncology痴 proprietary lipid gene
delivery systems to develop gene therapy products with several of
Schering-Plough痴 proprietary genes, including the p53 tumor suppressor
gene.
Schering-Plough and Genzyme Molecular Oncology have chosen not to
pursue further research with this lipid gene delivery system at
this time and Schering-Plough has allowed their option to license
this technology to expire. Schering-Plough is currently conducting
Phase II clinical trials with its p53 gene therapy using its adenoviral
delivery system.
Schering-Plough of Madison, N.J., is a research-based company engaged
in the discovery, development, manufacturing and marketing of pharmaceutical
and health care products worldwide.
Genzyme Molecular Oncology is developing a new generation of cancer
products, focusing on cancer vaccines and angiogenesis inhibitors.
It has completed two phase I cancer vaccine trials in melanoma and
plans to begin additional trials in melanoma, breast cancer, and
ovarian cancer in the next year. Genzyme Molecular Oncology is developing
novel cancer products through the integration of its gene discovery,
gene therapy, small-molecule drug discovery, protein therapeutic
and genetic diagnostic efforts. A division of Genzyme Corporation,
Genzyme Molecular Oncology has its own common stock intended to
reflect its economic value and track its performance.
This press release contains forward-looking statements about potential
payments from Schering-Plough to Genzyme Molecular Oncology under
the agreement and the planned initiation of clinical trials in melanoma,
breast cancer and ovarian cancer. Actual results may differ materially
depending on many factors, including without limitation the results
of Schering-Plough痴 efforts to develop and commercialize a p53 gene
therapy product, the actual timing and results of clinical trials,
the timing and content of decisions made by the FDA and other regulatory
authorities, the ability to obtain and maintain patent coverage for
intellectual property covered by the agreement, the availability of
reimbursement from third party payors for gene therapy products, market
acceptance of any p53 gene therapy product that may be successfully
developed by Schering-Plough, and the competitive environment for
gene therapy products.
SOURCE Genzyme
Molecular Oncology
Please call Genzyme's corporate communications department at 1-617-252-7570
for additional information.
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