PPD Furthers Commitment to Pharmacogenomics
With Intent to Invest in DNA Sciences
FREMONT, Calif., WILMINGTON, N.C. and SAN FRANCISCO, Dec. 18
/PRNewswire/ -- DNA Sciences, Inc., PPD, Inc. (Nasdaq: PPDI) and
Axys Pharmaceuticals (Nasdaq: AXPH) announced today that DNA Sciences, a
genetics company, has entered into an agreement to acquire PPGx, Inc., a
pharmacogenomics products and services company. PPGx was originally formed as
a joint venture in February 1999 between PPD and Axys. The acquisition is
dependent upon the satisfaction of conditions that are customary with
transactions of this nature, including the receipt of regulatory approval.
Combining these entities will integrate different scientific methodologies
and research programs, pool patient sample collections and provide DNA
Sciences with PPGx's certified service laboratories. Both companies
investigate variations in DNA with the goal of determining the association of
such variations with diseases or drug response. DNA Sciences has developed a
discovery platform that localizes gene variants that may be associated with
disease susceptibility, disease course and treatment response; PPGx focuses
primarily on discovering the affects of gene variants on drug metabolism.
"By combining the scientific expertise and genetic data resources of these
two companies, we believe we will accelerate efforts to develop and introduce
DNA-based clinical diagnostics and therapeutics," said Hugh Y. Rienhoff, Jr.,
M.D., founder, chairman and chief executive officer of DNA Sciences. "We
believe the acquisition of this commercial infrastructure will help expedite
the development and marketing of DNA-based clinical tests that will help to
manage the diagnosis and treatment of common diseases more effectively."
Under the terms of the agreement, upon closing, DNA Sciences will issue
preferred stock to PPD and Axys in exchange for all of the outstanding capital
stock and options in PPGx. Prior to closing, PPD will increase its equity
stake in PPGx to an ownership position equal to that of Axys. PPD will also
purchase an additional amount of preferred shares of DNA Sciences.
PPD will maintain its role as exclusive marketer and distributor of the
pharmacogenomics products and services of PPGx. As part of an agreement, PPD
and DNA Sciences intend to work together to identify future opportunities to
apply the new company's genetics research and expertise to pharmaceutical
product development.
"This alliance is a logical and strategically important step for PPD in
furthering our commitment to genomic research and bolstering our ability to
incorporate genetics into the discovery and development of diagnostics and
therapeutics," stated Fred Eshelman, chief executive officer of PPD. "We
believe this alliance will create a genomics effort whose resources and
expertise span the continuum of drug discovery, development, disease
management and clinical practice."
The pooling of genomic and clinical data collected, managed and analyzed
by the new company will create "an information database useful for both drug
discovery and development," according to Josh Baker, Ph.D., president and
chief executive officer of PPGx.
"We believe that the combined expertise of DNA Sciences, PPGx and PPD will
help to identify the predictive genetic markers that enhance drug therapy and
patient care," Baker concluded.
According to John Walker, chairman of Axys, "The partnership of PPGx and
DNA Sciences will create an opportunity for a single company that can
participate more fully in the emerging opportunities surrounding
pharmacogenomics. The teams at both companies will be part of a new effort in
healthcare that has the potential to improve the way we treat patients and the
way we develop new therapies. We are enthusiastic about combining their
resources, and pleased to have been able to identify another opportunity for
an Axys affiliate, in this case, in the application of genomics to the
business of healthcare."
About DNA Sciences
DNA Sciences, Inc. is focused on the discovery and commercialization of
gene-based clinical tests that can determine disease susceptibility, predict
disease progress and more effectively manage disease treatment. DNA Sciences
collaborates with physicians, researchers and individuals to define the role
of genetics in common diseases, particularly cancer, cardiac arrhythmias and
diabetes. Individuals, through participation in The DNA Sciences Gene Trust
Project(sm) (http://www.DNA.com), help drive both the pace and direction of this
research. In addition, individuals and physicians can use http://www.DNA.com to learn
about the genetics of many common diseases. DNA Sciences, Inc. is based in
Fremont, Calif., and was founded in May 1998.
About PPGx
PPGx (http://www.ppgx.com) provides technical and consulting expertise in the
application of pharmacogenomics to optimize and accelerate drug development.
Combining genetic research technologies from its computational and research
divisions, GLP/CLIA laboratory services and a bioinformatics platform, PPGx
provides pharmacogenomic solutions for biotechnology and pharmaceutical
companies. A joint venture formed in February 1999 between PPD, Inc. and Axys
Pharmaceuticals, Inc., PPGx is committed to the discovery of predictive
genetic markers for use in clinical trials to result in delivery of
therapeutic and life-saving medicines. PPGx pharmacogenomic services and
products are exclusively marketed by PPD.
About PPD
PPD, Inc. is a leading global provider of contract and consulting
discovery research and development services for pharmaceutical and
biotechnology companies. With a corporate mission to help clients maximize the
return on their massive R&D investments, PPD provides innovative technologies,
therapeutic expertise and comprehensive services for drug discovery and
preclinical programs, Phase I-IV clinical development and post-market support.
The company has more than 3,800 professionals in 47 offices in 19 countries
around the world. For more information on PPD, please see the web site at
http://www.ppdi.com.
About Axys Pharmaceuticals
Axys Pharmaceuticals, Inc. is an integrated small molecule drug discovery
and development company. Axys has a broad pipeline of products for chronic
therapeutic applications that are partnered with world-class pharmaceutical
companies and a proprietary product portfolio in oncology. Axys is also
building shareholder value through affiliated businesses that leverage the
Axys technologies in order to provide capital for Axys' drug discovery and
development programs. In addition to the minority interest in Discovery
Partners International, Inc. (Nasdaq: DPII) resulting from the merger of Axys
Advanced Technologies into DPII earlier this year, and the minority interest
in DNA Sciences resulting from its acquisition of PPGx, Axys' other technology
leveraging business is Akkadix Corporation, an agricultural biotechnology
company.
Except for historical information, all of the statements, expectations and
assumptions, including expectations and assumptions about the value of this
agreement and PPD's related investment in DNA Sciences, contained in the
foregoing are forward-looking statements that involve a number of risks and
uncertainties. Although the companies have used best efforts to be accurate
in making those forward-looking statements, it is possible that the
assumptions made by management may not materialize. In addition, other
important factors which could cause results to differ materially include the
following: economic conditions in the pharmaceutical and biotechnology
industries; outsourcing trends in the pharmaceutical and biotechnology
industries; risks associated with acquisitions; loss of large contracts;
competition within the CRO and pharmaceutical industries; continued success in
sales growth; the ability to attract and retain key personnel; and the risk
factors set forth from time to time in each company's 'SEC filings, copies of
which are available upon request from the respective investor relations
departments.
CONTACT: Ami Knoefler, of DNA Sciences, Inc., 650-210-3588, or
Aknoefler@DNA.com; or Media, Roger Friedensen of PPGx, Inc.,
919-877-0877, or friedensen@epley-ral.com; or Media and
Financial, John Walker of Axys Pharmaceuticals, 650-829-1000;
or Media, Nancy Zeleniak, 919-462-4088, or
nancy.zeleniak@rtp.ppdi.com, or Financial, Jimmy Sloan,
910-772-7168, or jimmy.sloan@wilm.ppdi.com, both of PPD, Inc.
SOURCE PPD, Inc.; DNA Sciences, Inc.; PPGx Inc.; Axys
Pharmaceuticals
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Related links:
http://www.ppdi.com
http://www.ppgx.com http://www.DNA.com
CONTACT:
Ami Knoefler, of DNA Sciences, Inc.,
650-210-3588, or Aknoefler@DNA.com; or Media, Roger Friedensen of
PPGx, Inc., 919-877-0877, or friedensen@epley-ral.com; or Media
and Financial, John Walker of Axys Pharmaceuticals, 650-829-1000;
or Media, Nancy Zeleniak, 919-462-4088, or
nancy.zeleniak@rtp.ppdi.com, or Financial, Jimmy Sloan,
910-772-7168, or jimmy.sloan@wilm.ppdi.com, both of PPD, Inc.
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