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Cepheid Collaborates With Pharmaceutical Leader on Chronic Myelogenous Leukemia
Date:10/7/2010

, we look forward to extending the benefits of our best-in-class GeneXpert system to patients in the oncology field."

Xpert BCR-ABL has a CE Mark in Europe, and it has been available outside the United States since 2006.  Under the agreement announced today, the potential US commercialization of Xpert BCR-ABL will be accelerated, with Novartis funding the clinical studies and other development expenses.  Following the commercial release of the test, Novartis and Cepheid will explore further collaboration to develop other diagnostics which will help physicians better manage patient treatment.

In addition to funding development and clinical trial costs, Cepheid will receive an upfront fee of $5 million from Novartis with an additional $3 million in milestone payments over the next twelve months.  These monies will be recognized as 'Other Revenue,' ratably over approximately the next two years.  Upon commercial release in the US, Novartis will have exclusive global distribution rights to the Xpert BCR-ABL test under a Cepheid / Novartis label working in conjunction with Cepheid's Commercial Operations team.

About CepheidBased in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is a leading molecular diagnostics company that is dedicated to improving healthcare by developing, manufacturing, and marketing accurate yet easy to use molecular systems and tests. By automating highly complex and time-consuming manual procedures, the company's solutions deliver a better way for institutions of any size to access the full power of molecular diagnostics. The company's systems enable rapid, sophisticated genetic testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. Through its strong molecular biology capabilities, the company is focusing on those applications where accurate, rapid, and actionable test res
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