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Gen-Probe and Novartis Agree to Extend and Expand Blood Screening Collaboration
Date:1/27/2009

irus, thereby preventing life-threatening diseases from being passed along to transfusion recipients.

"Together these two companies have discovered and developed innovative solutions for the screening and prevention of infectious diseases to help protect the nation's blood supply," said William F. Moore, senior vice president, biomedical services operations, American Red Cross. "We are pleased to see this successful collaboration continue to focus on innovations and reinvestment in technology that will help keep the blood supply as safe as possible."

Unlike standard serological testing, nucleic acid testing (NAT) detects viral RNA and DNA during earlier stages of infection, shortening the window period from infection to detection. Scientific models estimate that NAT reduces the infectious window period of HIV-1, HCV and HBV from 35% to 91%, compared with standard serological methods.

About the Revised Agreement

The collaboration between Gen-Probe and Novartis was established in 1998, and was scheduled to expire in 2013. Under the original terms of the agreement, the companies shared revenue from the sale of blood screening assays. Gen-Probe was responsible for manufacturing costs, while Novartis was responsible for commercial expenses. The companies shared research and development (R&D) costs.

Under the revised agreement, Gen-Probe will continue to be primarily responsible for R&D and manufacturing. Novartis will remain responsible for sales and marketing of the products, but will collaborate more closely with Gen-Probe on sales, marketing and distribution strategies. In addition to sharing R&D costs, the companies will share manufacturing expenses. Gen-Probe also will receive a percentage of end-user revenue that escalates gradually from 2009 until 2015, and remains constant thereafter.

As part of the expanded agreement, Novartis has agreed
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SOURCE Gen-Probe Incorporated
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