Agreement Focused on Obesity and Type 2 Diabetes; Potential Total Value in
Excess of $39 Million
SAN DIEGO, May 26 /PRNewswire/ -- Novartis Pharma AG, Basel, Switzerland
and Trega Biosciences, Inc. (Nasdaq: TRGA), today announced that they have
signed a research, development and license agreement. The two companies will
focus on identification, development and commercialization of orally-active
small molecules for the treatment of certain diseases mediated by the
melanocortin receptor pathway including obesity, Type II diabetes and
Syndrome X. The agreement includes an equity investment at Trega's option,
and payments to Trega including a payment for past research upon signing,
research support and potential pre-commercialization milestones valued at
$39 million plus royalties on net sales for the successful development of one
product. Of the aggregate amount, Trega receives up to $19 million in
guaranteed funding. Additional milestones and royalties will be paid for
subsequent products.
"We are very pleased to work in collaboration with a company as highly
regarded as Novartis on a program that holds the promise of treating
intractable diseases and conditions," stated Robert S. Whitehead, Trega's
chairman and chief executive officer. "By combining our complementary
scientific and technical expertise we believe we can identify, optimize and
commercialize new therapies of great value to patients with a variety of
metabolic disorders."
"This agreement is another example of our steadfast commitment and
sustained leadership in the research fields of obesity and diabetes," said
Paul Herrling, Head of Novartis Pharma Research worldwide. "Trega's
integration of its combinatorial chemistry technology with its biological and
development expertise in this field was instrumental in our selection of Trega
as the ideal partner."
In exchange for the funding described previously, Trega will screen its
combinatorial chemistry libraries as well as be responsible for confirming
activity and function for promising drug candidates. Trega and Novartis will
collaborate to optimize candidates and conduct appropriate pre-clinical
testing. The work conducted under the collaboration will be reviewed by a
management committee composed of representatives from both companies.
Products resulting from this effort will be clinically developed and
commercialized worldwide by Novartis.
Trega Biosciences is a drug discovery company, utilizing combinatorial
chemistry and other technologies to pursue the discovery of novel, small-
molecule drug therapies. The company leverages its technology platform by
entering into pharmaceutical alliances, which provide partners with access to
Trega's technologies in exchange for licensing fees and potential milestones
and royalties, or by establishing joint-discovery alliances with
pharmaceutical and biotechnology companies. Trega also uses its drug
discovery technologies in its internal development programs, which are focused
today on discovering small molecules acting on melanocortin receptors.
Melanocortins act through a newly discovered receptor pathway which may be
important in the treatment of inflammatory and metabolic diseases.
Novartis is a world leader in Life Sciences with core business in
Healthcare, Agribusiness, and Nutrition. In 1997, Novartis Group sales were
31.2 billion Swiss francs, of which 18.8 billion were in Healthcare, 8.3
billion in Agribusiness and 4.1 billion in Nutrition. The group annually
invests more than 3.6 billion Swiss francs in R&D. Headquartered in Basel,
Switzerland, Novartis employs about 87,000 people and operates in over 100
countries around the world.
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
risks and uncertainties, including whether any proposed research will result
in a proposed product, whether any proposed product can be successfully
formulated, scaled-up, developed, and commercialized, whether regulatory
approvals can be obtained, the impact of competitive products and pricing,
whether any corporate collaborations or alliances will be successful, and
other risks detailed from time to time in Trega's Securities and Exchange
Commission filings. These forward-looking statements represent Trega's
judgment as of the date of this release. Actual results may differ materially
from those projected. Trega disclaims, however, any intent or obligation to
update these forward-looking statements.
SOURCE Trega Biosciences, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 374050
CONTACT:
Robert S. Whitehead, Chief Executive Officer,
619-410-663, or Vince Reardon, Director, Corporate
Communications, 619-410-6555, both of Trega Biosciences, Inc.
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