REDWOOD CITY, Calif., Oct. 27 /PRNewswire-FirstCall/ -- Maxygen, Inc. today announced that it expects to receive approximately $17.8 million in cash in exchange for its equity interest in Avidia, Inc. as a result of the acquisition of Avidia by Amgen, Inc. In addition, based on contingencies relating in part to the development of Avidia's IL-6 product, Maxygen may receive up to an additional $2.8 million as a result of the acquisition. The acquisition of Avidia by Amgen was completed on October 24, 2006.
Under an agreement that Maxygen entered into with Avidia at the time of Avidia's formation, Maxygen retains exclusive rights to use Avidia technology to develop and commercialize products directed to more than 10 targets, including CD40, CD-40 ligand, p40 (subunit of IL-23) and CTLA-4.
"We are pleased to see the success of the Avimer technology and its validation as a new discovery platform by the sale of Avidia to Amgen," said Russell Howard, Chief Executive Officer of Maxygen. "Our retained rights to practice the Avidia technology to develop products for potentially important drug targets provide us with additional options for breadth and speed of value capture in our product candidate portfolio. We can envision opportunities to combine the capabilities of our proprietary technologies for protein optimization with the Avimer technology to create unique products. Furthermore, the non-dilutive capital received by Maxygen from the sale of our equity in Avidia strengthens our financial position and provides us additional funds to advance Maxygen's ongoing and future development programs."
In July 2003, Maxygen, Dr. Pim Stemmer and a third-party investor formed Avidia as a spinout company from Maxygen. In connection with the spin-out, Maxygen transferred to Avidia certain technology and obtained exclusive licenses to use Avidia technology to develop and commercialize human therapeutic products for certain specific targets.
About Avimer Proteins
Avimer proteins are multimeric peptides that originate from families of human serum proteins. The use of these proteins in the development of novel therapeutics may result in drugs with multiple functions and activities. Avimer proteins may have the potential to be localized to a particular organ system or targeted to particular tissues, thereby increasing the relative amount of the drug where it is most needed and decreasing the amount where it is not desired to create more favorable safety profiles. Avimer proteins may be easier to manufacture than most proteins and may enable rapid development from concept to clinic.
Maxygen, Inc., headquartered in Redwood City, California, is committed to the discovery, development and commercialization of improved next-generation protein pharmaceuticals for the treatment of disease and serious medical conditions. For additional information on Maxygen, including access to Maxygen's SEC filings, please visit Maxygen's website at www.maxygen.com. Maxygen and the Maxygen logo are trademarks of Maxygen, Inc.
This news release contains forward-looking statements about our research and business prospects, including those relating to: our plans or ability to use the Avidia technology or to research, develop or commercialize any potential products relating to the Avidia technology or Avimer proteins in connection with our retained rights; the potential of the Avidia technology or Avimer proteins to lead to the development of any therapeutic products or result in therapeutic products that are suitable for human therapeutic use, with sufficient safety, function and activity for such purpose; the potential of Avimer proteins to enable the development of any potential therapeutic protein more rapidly than other proteins; our plans to use the funds received in connection with the acquisition of Avidia, Inc. by Amgen, Inc. for any specific purpose; and our receipt of any future contingent payments in connection with such acquisition. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Among other things these risks and uncertainties include, but are not limited to: changing research and business priorities of Maxygen and/or its corporate collaborators; the inherent uncertainties of pharmaceutical drug development; the uncertain timing of therapeutic drug development; competitors producing superior products; and our ability to establish and maintain our research and commercialization collaborations and manufacturing arrangements. These and other risk factors are more fully discussed in our Form 10-K for the year ended December 31, 2005, including under the caption "Risk Factors," and in our other periodic SEC reports, all of which are available from Maxygen at www.maxygen.com. Maxygen disclaims any obligation to update or revise any forward-looking statement contained in this release as a result of new information or future events or developments.