SOUTH SAN FRANCISCO, Calif., Nov. 20 /PRNewswire-FirstCall/ -- Exelixis, Inc. (Nasdaq: EXEL) today announced that it has entered into an agreement with Taconic Farms, Inc. (Hudson, NY) pursuant to which Exelixis sold Taconic an 80.1% stake in its subsidiary Artemis Pharmaceuticals GmbH for approximately $20 million, subject to certain post-closing adjustments. Artemis is a leader in the research, development and commercialization of genetically engineered mouse models and engineered mouse embryonic stem cells as genetic model systems for use at various stages of the drug discovery process or in academic research. In 2005, Artemis and Taconic established a strategic alliance focused on speeding up the generation, production and distribution of these tailored mouse models to more optimally serve their customers.
"I believe that the alliance between Taconic and Artemis over the past couple of years has demonstrated the value of combining the two companies' capabilities," said George A. Scangos, Ph.D., president and chief executive officer of Exelixis. "Artemis has established a leading position in the generation of sophisticated mouse models. Taconic is one of the world's leading suppliers of mice. Artemis' capabilities will allow Taconic to provide a broader line of mice to its customers and to rapidly generate custom-made models for its customers as well. With Taconic's new stake in Artemis, the synergies that the two companies have already realized will be significantly enhanced. By retaining a 19.9% ownership stake, we will retain preferred access to Artemis capabilities for our own research. Artemis and Taconic have worked extremely well together over the past two years, and I look forward to an even more productive relationship in the future."
Under the terms of the agreement, Taconic paid Exelixis approximately $20 million, subject to certain post-closing adjustments, in exchange for an 80.1% ownership position in Artemis. Exelixis has the option to sell its remaining interest to Taconic, and Taconic also has an option to purchase Exelixis' remaining interest during certain times and under certain circumstances through 2015.
Exelixis, Inc. is a development-stage biotechnology company dedicated to the discovery and development of novel small molecule therapeutics for the treatment of cancer and other serious diseases. The company is leveraging its fully integrated drug discovery platform to fuel the growth of its development pipeline, which is primarily focused on cancer. Currently, Exelixis' broad product pipeline includes investigational compounds in phase 2 and phase 1 clinical development for cancer and renal disease. Exelixis has established strategic corporate alliances with major pharmaceutical and biotechnology companies, including GlaxoSmithKline, Bristol-Myers Squibb Company, Genentech, Wyeth Pharmaceuticals and Daiichi-Sankyo. For more information, please visit the company's web site at http://www.exelixis.com.
Artemis has developed a versatile technology platform in mouse genetics and functional genomics. The company offers custom made genetically engineered mouse models as in vivo genetic model systems for use at various stages of the drug discovery process or in academic research. Models produced by the ArteMice(TM) platform include knock out and "humanization" platforms and platforms for generating inducible/reversible RNAi knock down models and ASKA models for the inducible and reversible knock down of kinases. These platforms are being continually expanded, most recently with the addition of mouse models humanized for key drug metabolism enzymes (ADME mice). Such mice are being used to provide highly relevant in vivo data for gene target function, compound efficacy and on/off target-related side effects; these data contribute in a significant way to reducing attrition in drug research. Artemis customers include most of the leading pharmaceutical companies, biotech firms and many academic institutions in Europe, the United States and Japan. Artemis has been a wholly-owned subsidiary of Exelixis, Inc. (Nasdaq: EXEL) since 2001.
This press release contains forward-looking statements, including, without limitation, all statements related to the respective capabilities of Artemis Pharmaceuticals GmbH and Taconic Farms, Inc. to develop, generate, produce and distribute genetically engineered mouse models and engineered mouse embryonic stem cells and Exelixis' future access to Artemis' technology. Words such as "believe," "will," "look forward," "continually" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Exelixis' current expectations. Forward-looking statements involve risks and uncertainties and past performance is not indicative of future results. Exelixis' actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the risk that products candidates that appeared promising in early research do not demonstrate safety or efficacy in clinical trials; the ability of the company to advance preclinical compounds into clinical development; the uncertainty of the U.S. Food and Drug Administration approval process; and the therapeutic and commercial value of the company's compounds and risks related to the company's need for additional financing. These and other risk factors are discussed under "Risk Factors" and elsewhere in Exelixis' quarterly report on Form 10-Q for the quarter ended September 30, 2007 and other filings with the Securities and Exchange Commission. Exelixis expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Exelixis' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
|SOURCE Exelixis, Inc.|
Copyright©2007 PR Newswire.
All rights reserved