Press Release; Berlin, February 20, 2006
MOLOGEN reviews extensive license agreement on
tumor therapy in India
Shantha Biotechnics to make seven-figure initial payment
MOLOGEN AG (ISIN DE0006637200) currently reviews an extensive long-term license agreement with the leading Indian biotechnology company Shantha Biotechnics Ltd. The agreement governs the use of MOLOGEN's development of a tumor therapy with genetically modified cells in India and neighboring countries. The cell-based therapeutic is employed to treat a number of cancerous illnesses, including colon cancer, breast cancer, kidney cancer, and lung carcinomas. Based on an agreement already reached in December 2005, MOLOGEN would receive an initial payment of several million Euros as well as a substantial share of future revenues as royalties. Due to the amount of the initial payment and the fact that MOLOGEN will receive a revenue share, the monetary transactions are subject to official approval. Cash receipt from the license agreement would then only be expected during 2006. MOLOGEN therefore reviews alternative agreement terms. With the license agreement, MOLOGEN has succeeded in marketing one of its therapeutic approaches in one of the fastest-growing markets of the entire health sector.
Last December, during the course of the agreement negotiations held over the past several months with Shantha and other companies interested in a license, the therapy method was also presented to the responsible Indian authorities, who valued it highly and considers it to be particularly worthy of support. It is therefore to be expected that the therapeutic method will be widely marketed in India as early as fall 2006, after the certification and licensing study by oncology experts in clinics in Mumbai, Delhi, and Hyderabad has been completed.
MOLOGEN will produce the necessary active ingredients of the therapeutic for Shantha Biotechnics in Germany. In the past several months, MOLOGEN has significantly optimized and simplified the logistics chain for genetically modified cells. As a result, a pre-stage of the therapeutic can now be shipped in a cooled container. It can then be processed in the clinics themselves, with technology available in most cancer therapy centers today. It has therefore become unnecessary to manufacture the complete therapeutic on site in specialized Cell- and Genetherapy Centers, which means that a much larger number of patients can now benefit from this treatment approach.
With the logistics considerably improved, business relations in Arabic countries will be restructured consequently, to gain higher margins due to less investment required. MOLOGEN currently strives to conclude agreements with further partners in order to promote and regulate the use of its therapeutic approach development in promising regions.
MOLOGEN uses its proprietary DNA technologies to create and develop treatments for high-unmet-need illnesses. The main focuses are the unique and patented MIDGE and dSLIM technologies. Based on these platforms, MOLOGEN is developing DNA-based vaccines and therapeutics to prevent or cure a wide range of diseases.
Going public in 1998, MOLOGEN was one of the first German biotechnology companies to be floated on the stock exchange. The MOLOGEN shares are traded on the Geregelter Markt in Frankfurt.
Disclaimer concerning prognoses
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