HORSHAM, Pa.--(BUSINESS WIRE)--Neose Technologies, Inc. (Nasdaq GM: NTEC) today announced that its partner, BioGeneriX AG, a company of the ratiopharm Group, will proceed with development of GlycoPEG-GCSF under an existing collaboration agreement. BioGeneriX also informed Neose that it has declined to exercise its option to license Neose’s GlycoPEGylation™ technology for use with an undisclosed BioGeneriX protein. Previously on October 20, 2006, Neose amended its agreements with BioGeneriX to extend to December 31, 2006 the dates on which it could terminate the GlycoPEG-GCSF agreement, and exercise the option for the undisclosed protein.
In accordance with the amended Research, Co-development and Commercialization Agreement for GlycoPEG-GCSF, BioGeneriX will continue with clinical development, subject to the additional Phase I and II diligence requirements added by the October 20, 2006 amendment, and will assume Neose’s cost of reagent supply for clinical development as of January 1, 2007. Neose retains the marketing rights to GlycoPEG-GCSF in the United States, Canada, Mexico and Japan. GlycoPEG-CGSF is currently in Phase I clinical trials in a Western European jurisdiction.
BioGeneriX declined to exercise its option to an exclusive, worldwide license to Neose’s GlycoPEGylation technology for use with a GlycoPEGylated erythropoietin made in Chinese hamster ovary (CHO) cells (GlycoPEG-CHO-EPO). The identity of this protein was previously undisclosed in accordance with the terms of the amended Research, License and Option Agreement. All rights to Neose’s GlycoPEGylation technology as it applies to GlycoPEG-CHO-EPO revert to Neose.
“We are pleased that BioGeneriX has decided to proceed with GlycoPEG-GCSF,” said George J. Vergis, Ph.D., Neose’s president and chief executive officer. “This product candidate is in Phase I and represents a significant investment by BioGeneriX and Neose. Neose’s rights to GlycoPEG-GCSF will continue to increase in value as BioGeneriX advances the product candidate toward commercialization in its territory, with no further cost to Neose.”
“When we began our collaboration with BioGeneriX on GlycoPEG-CHO-EPO, our NE-180 (GlycoPEGylated EPO expressed in insect cells) was still in preclinical development. We viewed GlycoPEG-CHO-EPO as an alternative opportunity to target the multi-billion dollar EPO market with all development funded by our partner. Although the decision by BioGeneriX to cease further development was unrelated to the early development results from the program, in view of the clinical progress we have made with NE-180, we will concentrate our investment on further clinical development of NE-180 as a next-generation EPO competitive with best-in-class EPO drugs currently on the market and in development,” continued Vergis.
About G-CSF and Neutropenia
G-CSF is prescribed to stimulate the production of neutrophils, and is approved for sale in major markets around the world for the treatment of neutropenia associated with myelosuppressive chemotherapy. Worldwide sales in the G-CSF category were approximately $4 billion in 2005.
Neutropenia is a severe reduction in the number of neutrophils (mature white blood cells) in the circulating blood, commonly associated with cancer chemotherapy. Patients with neutropenia are at increased risk of developing serious infection. If not treated promptly, neutropenia can be life-threatening.
About BioGeneriX
BioGeneriX was founded in June 2000 to develop biopharmaceutical drugs with known modes of action and established drug markets. With its internal resources and a large network of strategic partners and service providers, BioGeneriX develops a high-quality biotech portfolio for marketing and distribution by its parent company and global partners. For more information, visit its website at www.biogenerix.com.
About the ratiopharm Group
ratiopharm is Europe’s leading generics producer and in its home country Germany the top selling and most commonly prescribed pharmaceutical brand. The company produces high quality medicines and sells them at low prices. By doing so, it contributes to cost containment in the healthcare sector. With over 700 medicines, available exclusively from pharmacies, it has one of the widest product ranges in the business. ratiopharm sells 322 million pack units every year, meeting the needs of virtually all areas of medicine, from allergies to circulation problems and from gastroenteritis to toothaches. Founded in 1974, ratiopharm is now bringing its business model and experience to international markets. It is already active in 24 countries. In 2005, ratiopharm generated worldwide revenues of 1.6 billion Euros, of which 700 million Euros were from sales in Germany. For more information, visit its website at www.ratiopharm.de.
About Neose Technologies, Inc.
Neose Technologies, Inc. is a clinical-stage biopharmaceutical company focused on the development of next-generation therapeutic proteins that are competitive with best-in-class protein drugs currently on the market, on its own and through strategic partnerships. The lead candidates in its pipeline, NE-180 for use in the treatment of chemotherapy-induced anemia and anemia associated with chronic renal failure and GlycoPEG-GCSF for chemotherapy-induced neutropenia, target markets with aggregate sales in excess of $14 billion.
For more information, please visit http://www.neose.com.
Neose “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties, including without limitation the risk that BioGeneriX will be unable to fund clinical development of GlycoPEG-GCSF, the risk that GlycoPEG-GCSF will fail in clinical trials, the risk that regulatory approval for GlycoPEG-GCSF will never be received, and the risk that GlycoPEG-GCSF will not be successfully commercialized or marketed. For a discussion of these risks and uncertainties, any of which could cause our actual results to differ from those contained in the forward-looking statement, see the section of Neose’s Annual Report on Form 10-K for the year ended December 31, 2005, entitled “Factors Affecting the Company’s Prospects” and discussions of potential risks and uncertainties in Neose’s subsequent filings with the SEC. Contacts
Neose Technologies, Inc. A. Brian Davis, 215-315-9000 or Barbara Krauter, 215-315-9004
