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Pharmion and MethylGene Announce Collaboration to Develop Sirtuin Inhibitors as Anti-Cancer Agents
Date:8/20/2007

ield."

"Sirtuins are an area of increasing interest to us due to their potential broad application in epigenetic regulation of disease. This collaboration, focused in cancer, enhances the joint vision of our companies to be actively involved in this important area of cancer research," said Donald F. Corcoran, President and Chief Executive Officer of MethylGene. "In addition, we are pleased to be collaborating on this project with Pharmion, as together our Companies have demonstrated a strong synergistic working relationship with the advancement of MGCD0103 through clinical trials."

Terms

MethylGene and Pharmion will share in the research, development and commercialization of the sirtuin inhibitor program. Pharmion will fund the preclinical research program, including approximately US $5 million in FTE support to MethylGene over an 18 month period. Once a development candidate is identified, the Companies expect to share in development funding in accordance with the terms of the existing license and collaboration agreement -- 40 percent for MethylGene and 60 percent for Pharmion. Pharmion's milestone payments to MethylGene could reach approximately US $22 million based on the achievement of development and regulatory goals, with the nearest-term milestone of US $2 million to be paid upon enrollment of the first patient in a Phase I trial. In addition, Pharmion could pay MethylGene up to approximately US $79 million upon the achievement of sales milestones.

MethylGene will receive royalties on net sales in North America ranging from 10.5 to 21 percent and of 8.5 to 13 percent for all other licensed territories. These royalties may be subject to certain reductions if the commercialized product is not based on MethylGene's current lead compounds and related analogs. MethylGene will have an option, at its sole discretion, as long as it continues to co-develop, to co-promote approved products in North America and, in lieu of receiving royalties, to
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SOURCE Pharmion Corporation

Copyright©2007 PR Newswire.

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