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Gen-Probe Licenses from Corixa Rights to Develop Molecular
Diagnostic Tests for Potential Markers of Genitourinary and Other Cancers
- Agreement Broadens and Accelerates Gen-Probe's Strategic Move into Oncology
Diagnostics, Moves Additional Corixa Discoveries Toward Product
Commercialization -
SAN DIEGO and SEATTLE, Jan. 5 /PRNewswire-FirstCall/ -- Gen-Probe
(NASDAQ:GPRO) has licensed from Corixa (NASDAQ:CRXA) the rights to develop
molecular diagnostic tests for approximately 50 potential genetic markers in
the areas of prostate, ovarian, cervical, kidney, lung and colon cancer, the
companies announced today.
"This agreement with Corixa is a significant step forward in our long-term
strategy to become a leader in cancer diagnostics," said Henry L. Nordhoff,
chairman, president and chief executive officer of Gen-Probe. "We believe the
next two to three years will be a time of strong product sales growth for
Gen-Probe, driven by the roll-out of the TIGRIS(R) system, continued
international expansion in blood screening, and the U.S. approvals of our
Procleix(R) Ultrio(TM) and West Nile virus assays. We expect this agreement
with Corixa, together with our collaborations with DiagnoCure, AdnaGen and
others, to drive another major cycle of longer-term growth."
Under the terms of the agreement, Gen-Probe will gain access to certain Corixa
intellectual property covering multiple genetic sequences related to potential
markers for various cancers. These markers include AMACR for prostate and
colon cancers, CA125 for ovarian cancer, and L523S for cervical and lung
cancers. In exchange, Gen-Probe will pay Corixa a $1.6 million initial access
fee, and an additional $3.2 million in two equal access fees in January of 2006
and 2007, unless Gen-Probe terminates the agreement. Gen-Probe also will pay
Corixa up to $2 million on a product-by-product basis if certain regulatory and
commercial milestones are achieved. In addition, Gen-Probe will pay Corixa
royalties on sales of any products developed using Corixa's intellectual
property.
"We are pleased to have entered into a broad relationship with Gen-Probe for
the development of multiple nucleic-acid based diagnostics," said Steven
Gillis, Ph.D. chairman and chief executive officer of Corixa. "The transaction
underscores value associated with a number of prior Corixa discoveries and our
ability to move these discoveries forward toward possible commercialization.
We welcome Gen-Probe as the most recent of Corixa's diagnostic partners.
Previous licensees include DakoCytomation, Abbott Laboratories and Ortho
Biotechnology."
About Gen-Probe
Gen-Probe Incorporated is a global leader in the development, manufacture and
marketing of rapid, accurate and cost-effective nucleic acid tests for
diagnosing human diseases and screening donated human blood. Using its
patented technologies, Gen-Probe has received FDA approvals or clearances for a
broad portfolio of products that detect a variety of infectious microorganisms,
including those causing sexually transmitted diseases, tuberculosis, strep
throat, pneumonia and fungal infections. In addition, Gen-Probe's TIGRIS
instrument is the only fully automated, high-throughput system in the molecular
diagnostics industry. The Company also developed and manufactures the only
FDA-approved blood screening assay for the simultaneous detection of HIV-1 and
HCV, which is marketed by Chiron Corporation. Gen-Probe has more than 20 years
of nucleic acid detection research and product development experience, and its
products are used daily in clinical laboratories and blood collection centers
throughout the world. Gen-Probe is headquartered in San Diego, California and
employs approximately 900 people. For more information, go to
http://www.gen-probe.com/.
About Corixa
Corixa is a biopharmaceutical company developing vaccine adjuvants and
immunology based products that manage human diseases. Corixa's products are
currently in multiple clinical development programs, including several that
have advanced to and through late stage clinical trials. The company partners
with numerous developers and marketers of pharmaceuticals, targeting products
that are Powered by Corixa(TM) technology with the goal of making its potential
products available to patients around the world. Corixa was founded in 1994
and is headquartered in Seattle, with additional operations in Hamilton,
Montana. For more information, please visit Corixa's Web site at
http://www.corixa.com/.
Gen-Probe Caution Regarding Forward-Looking Statements
Any statements in this press release about Gen-Probe's expectations, beliefs,
plans, objectives, assumptions or future events or performance are not
historical facts and are forward-looking statements. These statements are
often, but not always, made through the use of words or phrases such as
"believe," "will," "expect," "anticipate," "estimate," "intend," "plan," and
"would." For example, statements concerning intellectual property, future
development, the potential of the cancer diagnostics market, payment of license
fees and royalties, regulatory and commercial milestones, future growth, and
the human papillomavirus market are forward-looking statements. Forward-looking
statements are not guarantees of performance. They involve known and unknown
risks, uncertainties and assumptions that may cause actual results, levels of
activity, performance or achievements to differ materially from those expressed
or implied by any forward-looking statement. Some of the risks, uncertainties
and assumptions that could cause actual results to differ materially from
estimates or projections in the forward-looking statement include, but are not
limited to: (i) the risk that Corixa's intellectual property will be infringed
or invalidated, (ii) the risk that Gen-Probe's development of cancer
diagnostics will not be successful, (iii) the risk that the cancer diagnostics
market may not grow as expected, (iv) the risk that Gen-Probe may not be able
to maintain its current corporate collaborations, including with Corixa, or
enter into new ones, and (v) the risk that Gen-Probe will not enter the market
for human papillomavirus testing successfully or economically. For additional
information about risks and uncertainties Gen-Probe faces and a discussion of
the Company's financial statements and footnotes, see documents filed with the
SEC, including the Report on Form 10-Q for the fiscal quarter ended September
30, 2004 and all periodic filings made with the SEC. Gen-Probe assumes no
obligation and expressly disclaims any duty to update any forward-looking
statement to reflect events or circumstances after the date of this news
release or to reflect the occurrence of subsequent events.
Corixa Forward-Looking Statements
This press release contains forward-looking statements, including statements
regarding the commercial potential for molecular diagnostic tests for potential
markers of genitourinary and other cancers, and other statements about our
plans, objectives, intentions and expectations. Forward-looking statements are
based on the opinions and estimates of management at the time the statements
are made. They are subject to certain risks and uncertainties that could cause
actual results to differ materially from any future results, performance or
achievements expressed or implied by such statements. Factors that could
affect Corixa's actual results include, but are not limited to the "Factors
Affecting Our Operating Results, Our Business and Our Stock Price," described
in our Quarterly Report on Form 10-Q for the quarter ended September, 2004,
copies of which are available from our investor relations department. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release.
Gen-Probe
Michael Watts
Sr. director, investor relations and
corporate communications
858-410-8673
Corixa
Jim DeNike
Sr. director, corporate communications
206-366-3720
DATASOURCE: Gen-Probe Incorporated
CONTACT: Michael Watts, Sr. director, investor relations and corporate
communications of Gen-Probe, +1-858-410-8673; or Jim DeNike, Sr. director,
corporate communications of Corixa, +1-206-366-3720
Web site: http://www.corixa.com/
http://www.gen-probe.com/