Screening tests may lead to future licensing agreement
RESEARCH TRIANGLE PARK, N.C., Nov. 20 /PRNewswire-FirstCall/ -- Paradigm
Genetics, Inc. (Nasdaq: PDGM), a biotechnology company, today announced that
it has signed a fungicide evaluation agreement with Bayer CropScience whereby
Bayer will test a select number of chemical compounds validated in Paradigm's
fungicide screening program. The testing will take place at Bayer's research
headquarters in Monheim, Germany. Financial terms were not disclosed.
If the screening tests are successful, Bayer has the option to enter into
an exclusive licensing agreement with Paradigm to develop the lead chemicals
into commercial fungicides. Under this scenario, Paradigm could receive a
combination of research payments, exclusivity payments, milestone payments,
and/or royalties for the lead compounds.
"While our partnered programs in herbicide discovery and crop traits
occupy center stage in our agricultural business, we have had a successful
internal fungicide discovery program in which we've analyzed more than 250
targets and validated more than 50. This program has been supported by a
carefully crafted patent strategy, as evidenced by our recently issued U.S.
patents," said Keith Davis, Ph.D., Vice President, Agricultural Research of
Paradigm Genetics. "In recent months, we've found there to be greater interest
in licensing our fungicide assets. This agreement with Bayer represents an
important first step in commercializing discoveries resulting from our
fungicide program."
In 2003, Paradigm received two U.S. patents that may lead to the
development of novel, less toxic fungicides or antifungals, which are highly
sought after in the agricultural industry.
The first patent covers a fungicide target found in the fungal lysine
biosynthetic pathway as well as methods enabling the discovery of chemicals
that inhibit enzymatic steps within the lysine pathway. The second covers the
company's proprietary Transposon-Arrayed Gene Knock-Out (TAG-KO(R))
technology, which covers methods for the rapid and systematic mutation of
pathogenic fungi, enabling the efficient identification of novel antifungal
and fungicide targets as well as novel biosynthetic and degradation pathways.
The worldwide fungicide market is approximately $6 billion annually.
Demand for new fungicides with novel modes of action is expected to remain
high due to recurring fungal resistance.
About Paradigm Genetics
Paradigm is a biotechnology company aiming to increase R&D productivity by
focusing its integrated suite of technologies on the product development cycle
-- from target discovery to the subsequent enhancement of the safety and
efficacy profiles of development candidates in agriculture and human health.
Paradigm chooses a systems biology approach to understand gene function in the
context of biological pathways, and to develop assays and biomarkers for
molecular diagnostic solutions tailored to the needs of our partners.
Paradigm's proprietary Gene to Cell to System(TM) approach has four major
components: gene expression profiling, biochemical profiling (also known as
metabolomics), phenotypic profiling and data integration and coherence. For
more information, visit http://www.paradigmgenetics.com.
This press release contains forward-looking statements, including
statements regarding Paradigm's ability to increase R&D productivity by
focusing its integrated suite of technologies on the product development
cycle; and to use a systems biology approach to understand gene function in
the context of biological pathways, to develop assays and biomarkers for
molecular diagnostic solutions tailored to the needs of its partners. Such
forward-looking statements are based on management's current expectations and
are subject to a number of risks, factors and uncertainties that may cause
actual results, events and performance to differ materially from those
referred to in the forward-looking statements. These risks, factors and
uncertainties include, but are not limited to, Paradigm's early stage of
development, history of net losses, technological and product development
uncertainties, reliance on research collaborations, uncertainty of additional
funding and ability to protect its patents and proprietary rights. Certain of
these and other risks are identified in Paradigm's annual report on Form 10-K
for the year ended December 31, 2002 and in its quarterly report on Form 10-Q
for the quarter ended September 30, 2003, each filed with the Securities and
Exchange Commission. The Company does not intend to update any of the forward-
looking statements after the date of this release to conform these statements
to actual results or to changes in our expectations, except as may be required
by law.
SOURCE Paradigm Genetics, Inc.
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Related links:
http://www.paradigmgenetics.com
CONTACT:
Melissa Matson, Director, Corporate
Communications of Paradigm Genetics, Inc., +1-919-425-3000, or
Brian Ritchie or Mark Vincent of Noonan Russo Presence Euro RSCG,
+1-212-845-4200
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