SAN DIEGO, Nov. 10 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today announced Novartis Pharma AG purchased the $7.0 million of common stock
pursuant to the put option Trega had received in connection with its
collaboration with Novartis, announced last May. Today, Novartis received
1,866,667 shares of Trega common stock priced at $3.75 per share.
"This transaction draws us into a closer alliance with one of the premier
pharmaceutical companies in the world," said Larry Muschek, president of
research and development. "In addition, it strengthens our balance sheet
which will assist Trega in pursuing opportunities in the coming new year."
The stock put arrangement is only one component of a transaction that
included a research, development and license agreement signed in May 1998.
Under this agreement, the two companies announced they would focus on
identification, development and commercialization of orally-active small
molecules for the treatment of certain diseases mediated by the melanocortin-4
receptor pathway, including obesity, diabetes and Syndrome X. The
collaboration included an equity investment at Trega's discretion, 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 of products. Of the aggregate amount, Trega
receives up to $19 million in guaranteed funding.
Trega Biosciences is a drug discovery company, utilizing combinatorial
chemistry and other molecular diversity 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 are a class of receptors which may be important in
the treatment of inflammatory and metabolic diseases.
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 the funding described above will be
sufficient to materially advance the Company's goals, whether funding will be
available in the future, whether the collaboration with Novartis will be
successful, 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, the financial
condition of the Company in the future, 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.
Trega's releases are on the World Wide Web at http://www.trega.com and PR
Newswire's fax-on-demand service at 1-800-758-5804, extension 374050.
SOURCE Trega Biosciences, Inc.
 back to top
Related links:
http://www.trega.com
Company News On-Call:
http://www.prnewswire.com/comp/374050.html or fax,
800-758-5804, ext. 374050
CONTACT:
Vince Reardon, Director of Corporate
Communications for Trega Biosciences, Inc., 619-410-6555
|
