Gene Logic Enters Into Agreement with Lundbeck to Discover New Development Paths for Clinical Drug Candidates

  
    
  
  
    
      Gene Logic Inc. (NASDAQ:GLGC) announced today that it has entered into a 
      drug repositioning and development agreement with H. Lundbeck A/S to 
      seek alternative development paths for certain Lundbeck drug candidates. 
      These drug candidates were discontinued or de-prioritized in 
      clinical trials for reasons other than safety.
    
    
      The drug repositioning agreement provides for milestones and royalties 
      similar to those paid for development-stage in-licensing deals, 
      discounted to account for Lundbeck’s 
      contribution as the originator of the compound. The agreement also 
      provides Gene Logic the option to receive an exclusive license to any of 
      these drug candidates for which Gene Logic identifies a potential new 
      use and that Lundbeck chooses not to pursue, in which case Lundbeck 
      would receive success-based milestone and royalty payments.
    
    
      Gene Logic’s Drug Repositioning Program seeks 
      to find alternative development paths for drug candidates with good 
      safety records that have been de-prioritized or discontinued in clinical 
      trials. The program offers pharmaceutical partners a novel approach to 
      bolster their pipelines with high-quality drug candidates that 
      originated from their own R&D efforts. Applying a diverse set of drug 
      discovery technologies in parallel, Gene Logic’s 
      Drug Repositioning Program evaluates drug candidates for potential 
      utility across a wide spectrum of disease indications.
    
    
      Charles L. Dimmler, III, Gene Logic CEO commented, “Lundbeck 
      has an outstanding reputation as a developer of therapeutics for central 
      nervous system disorders. We are pleased to be partnering with an 
      innovative organization such as Lundbeck. With six current 
      pharmaceutical company drug repositioning partnerships, our approach is 
      establishing Gene Logic as the industry’s drug 
      repositioning leader.”
    
    
      In a separate agreement unrelated to its drug repositioning 
      partnerships, Gene Logic announced that it expects to realize 
      approximately $2.5 million in fees from Lundbeck for a license to 
      certain technology rights controlled by Gene Logic. The revenue will be 
      recognized over the coming year.
    
    
      Gene Logic Overview
    
    
      Gene Logic is transforming into a biopharmaceutical development company 
      through partnerships with pharmaceutical companies. Our partners provide 
      Gene Logic with access to their drug candidates that have been assessed 
      as safe in human clinical trials but discontinued for other reasons. 
      Gene Logic applies its drug indication platform to find new therapeutic 
      uses for the drug candidates. Gene Logic expects to receive milestone 
      payments and royalties on drug candidates that our partners choose to 
      develop based on the indications we find or, if the partner elects not 
      to pursue such new indications, Gene Logic may receive ownership and 
      development rights.
    
    
      Gene Logic has also developed proprietary genomics databases and 
      services to enable customers worldwide to discover and prioritize drug 
      targets, identify biomarkers, predict toxicity and understand mechanisms 
      of toxicity, and obtain insights into the efficacy of specific compounds.
    
    
      Founded in 1994, Gene Logic is headquartered in Gaithersburg, Maryland, 
      with additional research and development facilities in Cambridge, 
      Massachusetts. The Company currently has about 150 employees worldwide. 
      For more information, visit www.genelogic.com 
      or call toll-free – 1/800/GENELOGIC.
    
    
      Safe Harbor Statement
    
    
      This press release contains “forward-looking 
      statements,” as such term is used in the 
      Securities Exchange Act of 1934, as amended. Such forward-looking 
      statements include the Company’s ability to 
      identify strategies for making its businesses successful and the impact 
      of such strategies on our business and financial performance and on 
      shareholder value. Forward-looking statements typically include the 
      words “expect,” “anticipate,” 
      “believe,” “estimate,” 
      “intend,” “may,” 
      “will,” and 
      similar expressions as they relate to Gene Logic or its management. 
      Forward-looking statements are based on our current expectations and 
      assumptions, which are subject to risks and uncertainties. They are not 
      guarantees of our future performance or results. Our actual performance 
      and results could differ materially from what we project in 
      forward-looking statements for a variety of reasons and circumstances, 
      including particularly such risks and uncertainties that may affect the 
      Company’s operations, financial condition and 
      financial results and that are discussed in detail in the Company’s 
      Annual Report on Form 10-K and our other subsequent filings with the 
      Securities and Exchange Commission. They include, but are not limited 
      to: whether we will be able to identify and successfully implement 
      strategies, on favorable terms or at all, for improving the performance 
      and value of our businesses and improving the value of our Genomics 
      business and whether repositioned compounds are successfully returned to 
      our customers’ pipelines and generate sales, 
      and resulting milestones and royalties for the Company or whether we 
      acquire repositioned compounds on acceptable terms and are able to 
      derive revenue from these compounds through licensing or otherwise, 
      whether we can enter into agreements to develop sufficient compounds to 
      fulfill our plans for the Drug Repositioning Division, and improving the 
      value of our businesses to shareholders; whether there will be remaining 
      price adjustments or liabilities associated with the sale of the 
      Pre-Clinical Division, whether we will be able successfully to manage 
      our existing cash adequately and whether we will have access to 
      financing on sufficiently favorable terms to maintain our businesses and 
      effect our strategies, including development of repositioned compounds; 
      whether we will be able to recruit and retain qualified personnel, 
      particularly in light of our restructuring efforts; potential negative 
      effects on our operations and financial results from workforce 
      reductions, other restructuring activities, and the evaluation of 
      strategic options; the potential loss of significant customers; the 
      possibility of further write-down of the value of certain intangible 
      assets of the Company, including goodwill associated with the Genomics 
      Division; and the possibility of delisting from NASDAQ Global Markets, 
      which could have an adverse effect on the value of our stock. Gene Logic 
      undertakes no obligation to update or revise any forward-looking 
      statements, whether as a result of new information, future events or 
      otherwise.