CAMBRIDGE, Mass., Oct. 22 /PRNewswire-FirstCall/ -- Transkaryotic
Therapies, Inc. (Nasdaq: TKTX) today announced that it has completed the
purchase of the 20% equity interest in TKT Europe-5S AB held by the founding
European executives of TKT Europe-5S for $61 million. With this purchase, TKT
now owns 100% of TKT Europe-5S. The purchase price was based on a predefined
formula included in the original agreement between TKT and the founding
European executives.
"The European team has done an outstanding job of working with leading
physicians so that patients benefit from Replagal, and we are very happy this
important group will continue as a key part of our organization," said Michael
J. Astrue, President and Chief Executive Officer of TKT. "With the continuing
commitment of our European team, we believe we are positioned to continue to
bring the benefits of Replagal to more patients in Europe and to prepare for
the potential European launch of our enzyme replacement therapy, I2S, for
Hunter syndrome in 2006."
The company will account for the acquisition of TKT Europe-5S's minority
interest as a step acquisition in the fourth quarter of 2004. TKT expects
that the majority of the purchase price will be allocated to tangible and
intangible assets.
TKT formed TKT Europe-5S in April 2000 with the primary responsibility of
marketing, selling and distributing Replagal(TM) (agalsidase alfa), its enzyme
replacement therapy for the treatment of Fabry disease, in Europe. Since that
time, the organization has grown from a small group of dedicated founding
executives to an established European marketing and sales organization.
About TKT
Transkaryotic Therapies, Inc. is a biopharmaceutical company primarily
focused on researching, developing and commercializing treatments for rare
diseases caused by protein deficiencies. Within this focus, the company
markets Replagal(TM), an enzyme replacement therapy for Fabry disease, and is
developing treatments for Hunter syndrome and Gaucher disease. Outside its
focus on rare diseases, TKT intends to commercialize Dynepo(TM), its Gene-
Activated(R) erythropoietin product for anemia related to kidney disease, in
the European Union. TKT was founded in 1988 and is headquartered in Cambridge,
Massachusetts, with additional operations in Europe, Canada and South America.
Additional information about TKT is available on the company's website at
http://www.tktx.com.
This press release contains forward-looking statements including
statements regarding certain TKT products, including Replagal and I2S, as well
as statements containing the words "believes," "anticipates," "plans,"
"expects," "estimates," "intends," "should," "could," "will," "may," and
similar expressions. There are a number of important factors that could cause
the company's actual results to differ materially from those indicated by such
forward-looking statements, including: whether any of the company's products,
including Replagal, will achieve the commercial success anticipated by the
company; the timing of submissions to and decisions by the FDA, the EMEA and
equivalent regulatory authorities regarding marketing and other applications,
including in particular with respect to I2S; whether the FDA, the EMEA and
equivalent regulatory authorities will grant marketing approval for the
company's products such as I2S on a timeline consistent with TKT's
expectations, or at all; the impact of the company's buyout of the minority
holdings of its European subsidiary on sales of Replagal and on legal
reporting requirements; whether the 5S executives will continue in their
respective roles with TKT Europe after their agreements expire in February
2005; whether competing products will reduce any market opportunity that may
exist; results of litigation; the need for cash; and other factors set forth
under the caption "Certain Factors That May Affect Future Results" in the
company's quarterly report on Form 10-Q filed August 9, 2004, which is on file
with the Securities and Exchange Commission and which factors are incorporated
herein by reference. While the company may elect to update forward-looking
statements at some point in the future, the company specifically disclaims any
obligation to do so, even if its expectations change.
Gene-Activated(R) is a registered trademark and Replagal(TM) is a
trademark of Transkaryotic Therapies, Inc. Dynepo(TM) is a trademark of
Sanofi-Aventis SA.
For More Information Contact:
Justine E. Koenigsberg
Senior Director, Corporate Communications
(617) 349-0271
Daniella M. Lutz
Corporate Communications Manager
(617) 349-0205
SOURCE Transkaryotic Therapies, Inc.
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Related links:
http://www.tktx.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990913/TKTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/120657.html
CONTACT:
Justine E. Koenigsberg, Senior Director,
Corporate Communications, +1-617-349-0205, or Daniella M. Lutz,
Corporate Communications Manager, +1-617-349-0271, both of
Transkaryotic Therapies, Inc.
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