MONTREAL, QUEBEC--(MARKET WIRE)--Aug 1, 2007 -- MethylGene Inc. (Toronto:MYG.TO - News) announced that it has received notice today that Merck intends to terminate the exclusive license and research collaboration agreement, entered into by the companies on June 23, 2003, in accordance with its terms. Termination of the agreement will be effective 90 days from today.
As a result, MethylGene will regain exclusive rights to its beta-lactamase inhibitor program to overcome beta-lactamase mediated antibiotic resistance.
“We believe Merck has invested significant resources in this program, including the identification of an optimized lead compound which was advanced into expanded preclinical studies. Merck was evaluating this compound with the goal to potentially select it as a clinical candidate,” said Mr. Donald F. Corcoran, President and Chief Executive Officer of MethylGene. “While we are disappointed Merck has decided not to move any compound forward into clinical development, we have regained exclusive rights and it is our intent to seek an alternative partner for the program.”
The termination of this agreement does not have a near-term financial impact on MethylGene as the Company has not been involved in, nor provided resources, for the research and development of this non-core program, as planned, since July 2005. In addition, the Company has not included milestone payments from Merck in its cash projections.
About MethylGene
MethylGene Inc. (Toronto:MYG.TO - News) is a publicly-traded biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for cancer with a focus on some of the most promising areas of oncology such as histone deacetylase (HDAC) and kinase inhibitors. The Company’s lead product, MGCD0103, is an oral isotype-selective HDAC inhibitor presently in multiple clinical trials for solid tumors and hematological malignancies, including Phase II monotherapy and Phase I/II combination trials with Vidaza® and Gemzar®. MGCD265 is an oral kinase inhibitor targeting the c-Met, Tie-2, Ron and VEGF receptor tyrosine kinases. In addition, MethylGene has several preclinical non-oncology programs: MGCD290, an HDAC inhibitor in combination with azoles for fungal infections; an HDAC program for Huntington’s disease; and a beta-lactamase program to overcome antibiotic resistance. MethylGene’s development and commercialization partners include Pharmion Corporation, Taiho Pharmaceutical and EnVivo Pharmaceuticals. Please visit our website at www.methylgene.com.
Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute forward-looking statements. Such statements, based as they are on the current expectations of management of MethylGene, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond MethylGene’s control. These risks and uncertainties could cause future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Such results, performance or achievements include, but are not limited to, the timing and effects of regulatory action; the continuation of collaborations; the results of clinical trials; the timing of enrollment or completion of clinical trials; the success, efficacy or safety of MGCD0103, MGCD265 or MGCD290; the ability to scale up, formulate and manufacture sufficient GMP, clinical or commercialization quantities of MGCD0103, MGCD265 or MGCD290, and the relative success or the lack of success in developing and gaining regulatory approval and/or market acceptance for any compound or new product including MGCD0103, MGCD265 or MGCD290. Such risks include, but are not limited to, the impact of general economic conditions, economic conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which MethylGene does business, stock market volatility, fluctuations in costs, expectations with respect to our intellectual property position and our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others, changes in the competitive landscape including changes in the standard of care for the various indications in which MethylGene is involved, and changes to the competitive environment due to consolidation, as well as other risks, which you are urged to read, as described in MethylGene’s Annual Information Form for the fiscal year ending December 31, 2006, under the heading ‘risk factors,’ the final prospectus filed on February 23, 2007, and all other documents filed by the Company that can be found at www.sedar.com. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance on the forward-looking statements included in this presentation. These statements speak only as an update on the date they are made and MethylGene is under no obligation to revise such statements as a result of any event, circumstance or otherwise except in accordance with law.
Contact:
Contacts: Investor Relations Contacts: Rx Communications Group, LLC Rhonda Chiger 917-322-2569 rchiger@rxir.com
MethylGene Inc. Donald F. Corcoran President & CEO 514-337-3333 ext. 373 mctavishk@methylgene.com http://www.methylgene.com
Source: MethylGene Inc.
