Montreal, Quebec. June 30, 2010 – MethylGene Inc. (TSX:MYG) today announced that Otsuka Pharmaceutical Co. Ltd. has further extended its funded research collaboration with MethylGene for the development of novel, small molecule kinase inhibitors for the local delivery and treatment of ocular diseases, excluding cancer, to the end of June 2011. In April 2010, MethylGene announced that the collaboration, originally formed in March 2008, was extended through September, 2010. This new extension will provide an additional US$1.27 million to MethylGene in research funding. This funding is in addition to the US$705,000 in funding previously announced by the Company on April 23, 2010.
Under this research collaboration, MethylGene is entitled to receive up to approximately US$50.5 million in milestone payments, as well as royalties on net sales of any resulting product. The first milestone payment of US $1.5 million would be received upon the commencement of the first GLP toxicity study by Otsuka.
“We are pleased to continue and expand the mutual efforts of our collaboration with Otsuka for the development of our kinase inhibitor technology for use in the treatment of ocular diseases,” said Donald F. Corcoran, President and Chief Executive Officer of MethylGene. “Otsuka is very committed to the collaboration and with this extension has added a team of Otsuka chemists to work in parallel with our chemists to create additional novel and backup inhibitors. We look forward to the program continuing to progress, moving toward the potential selection of a lead product candidate during 2011.”
About MethylGene
MethylGene Inc. (TSX: MYG) is a publicly-traded, clinical stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics with a focus on cancer. The Company’s product candidates include: MGCD265, an oral, multi-targeted kinase inhibitor targeting the Met, VEGF, Ron and Tie-2 receptor tyrosine kinases that is in multiple clinical trials for cancer; MGCD290, a fungal Hos2 inhibitor for use in combination with fluconazole for serious fungal infections which has completed Phase I clinical studies; and mocetinostat (MGCD0103), an oral, isoform-selective HDAC inhibitor for cancer which has been in multiple Phase II clinical trials and is currently in a Phase II trial in refractory or relapsed follicular lymphoma. Mocetinostat is licensed to Taiho Pharmaceutical Co. Ltd in certain Asian countries. A fourth compound discovered using MethylGene’s HDAC platform, EVP-0334 - a potential cognition enhancing agent for neurodegenerative diseases has successfully completed Phase I trials sponsored by EnVivo Pharmaceuticals Inc. MethylGene also has a funded collaboration with Otsuka Pharmaceutical Co. Ltd. for applications in ocular diseases using the Company’s proprietary kinase inhibitor chemistry. Please visit our website at www.methylgene.com.
Investor Relations Contacts
Rhonda Chiger Rx Communications Group, LLC Phone: 917-322-2569 rchiger@rxir.com
Donald F. Corcoran President & CEO MethylGene Inc. Phone: 514-337-3333 ext. 373 mctavishk@methylgene.com
