ChemGenex To Receive Significant Milestone Payment From Vernalis
February 23, 2005
ChemGenex Pharmaceuticals (ASX: CXS) today announced that it has achieved a research milestone in its depression target discovery program with Vernalis that will result in a milestone payment of A$720,000 (US$568,000).
The research agreement between ChemGenex and Vernalis which was signed in August 2004 has a value of approximately A$2 million (US$1.6 million) in the first year following milestone achievement. The partnership funds ongoing activities in the field of depression target discovery as well as development of discoveries previously made by ChemGenex. A further licensing and collaboration agreement is proposed in the current agreement and this will be developed over the coming months.
"This is a strong endorsement of the progress made by our depression research team" said Greg Collier, PhD., CEO and Managing Director of ChemGenex Pharmaceuticals. "To date we have identified and protected by patent application ten genes and proteins that are linked to depression, and we are working with Vernalis to validate these targets and move towards lead development. There is a real need for targeted new anti-depressants and we believe that our program is leading the way by identifying novel targets and pathways associated with the disease."
About ChemGenex Pharmaceuticals Limited (www.chemgenex.com)
ChemGenex Pharmaceuticals is a gene-based pharmaceutical company dedicated to improving the lives of patients by developing therapeutics in the areas of oncology, diabetes, obesity, and depression. ChemGenex currently has two compounds in Phase II clinical trials, CeflatoninŽ for leukemia and QuinamedŽ for solid tumors, and has a significant portfolio of anti-cancer, diabetes, obesity and depression programs. The company's diabetes and obesity program is partnered with Merck KGaA and the depression program is partnered with Vernalis plc. ChemGenex currently trades on the Australian Stock Exchange under the symbol "CXS".
Contacts
Dr. Greg Collier (CEO and Managing Director)
Australia +61 3 5227 2752
USA +1 650 474 9800 ext 103
Dr. Dennis Brown (President and Director)
USA +1 650 474 9800 ext 108
Australia +61 3 5227 2703
Safe Harbor Statement
Certain statements made herein that use the words "estimate," 'project," "intend," "expect," "believe," and similar expressions are intended to identify forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the company to be materially different from those which may be expressed or implied by such statements, including, among others, risks or uncertainties associated with the development of the company's technology, the ability to successfully market products in the clinical pipeline, the ability to advance promising therapeutics through clinical trials, the ability to establish our fully integrated technologies, the ability to enter into additional collaborations and strategic alliances and expand current collaborations and obtain milestone payments, the suitability of internally discovered genes for drug development , the ability of the company to meet its financial requirements, the ability of the company to protect its proprietary technology, potential limitations on the company's technology, the market for the company's products, government regulation in Australia and the United States, changes in tax and other laws, changes in competition and the loss of key personnel. These statements are based on our management's current expectations and are subject to a number of uncertainties that could change the results described in the forward-looking statements. Investors should be aware that there are no assurances that results will not differ from those projected.
