Human Genome Sciences establishes CoGenesys as independent company
Human Genome Sciences, Inc. announced that it has completed the transaction establishing its CoGenesys division as an independent company that will focus on the early development of selected gene-based product opportunities and the monetization of certain HGS intellectual property and technology assets.
"Through this transaction, HGS will realize value from certain intellectual property assets and early-stage product opportunities that we do not plan to develop internally," said H. Thomas Watkins, President and Chief Executive Officer, Human Genome Sciences. "HGS will benefit in future years from its right to share in CoGenesys revenues and from its equity interest. HGS will maintain its focus on progress toward the commercialization of our lead products, Albuferon for hepatitis C and LymphoStat-B for lupus, both of which are expected to enter Phase 3 clinical trials before the end of 2006."
As a result of the CoGenesys transaction, HGS will retain a 13% equity interest in the new company. HGS has granted CoGenesys exclusive rights to develop and commercialize biological products based on certain human genes discovered by HGS, and has granted CoGenesys a license to use its proprietary albumin-fusion technology to develop and commercialize certain albumin-fusion proteins. HGS is entitled to a portion of the revenue that CoGenesys receives from outlicensing or sales of certain therapeutic and diagnostic products successfully developed and commercialized. HGS also retains the right of first refusal prior to outlicensing by CoGenesys of several specific products that may be developed. In addition, HGS has the option to have CoGenesys perform pre-IND development work for up to two products per year, with reimbursement for expenses on a cost-plus basis; CoGenesys will be entitled to development milestone payments on any resulting products.
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