CAMBRIDGE, Mass., July 19 /PRNewswire/ -- Biogen, Inc.
(Nasdaq: BGEN) and Ontogeny, Inc., a private biotechnology company,
today announced that they have entered into an agreement to collaborate
on the discovery and commercialization of three specific "Hedgehog" cell
differentiation proteins.   The agreement covers most disease areas and
will initially focus on CNS disorders.
    Under the terms of the agreement, Biogen will invest approximately
$6 million in Ontogeny to provide research support over two years.  In
addition, the agreement calls for Biogen to make license fee and
milestone payments of up to $27 million per "Hedgehog" protein in
connection with bringing to market product candidates based on each of
three proteins being studied as part of the collaboration.  If product
candidates based on each of the three proteins are successfully
commercialized during the life of the agreement, Ontogeny could receive
up to $80 million in license fees and milestone payments.
    In return, Biogen will receive exclusive worldwide rights to
therapeutics directly based on Ontogeny's proprietary family of
"Hedgehog" proteins, Sonic, Indian and Desert "Hedgehogs," for most
disease areas.  Ontogeny retains exclusive rights to gene therapy and
other approaches, as well as certain disease areas and diagnostics.  The
two companies will collaborate closely in research, and Biogen, with
Ontogeny's involvement, will be responsible for development and
commercialization activities.
    Further terms of the agreement were not disclosed.
    "Hedgehog" proteins are a class of novel human proteins that are
responsible for inducing the formation or regeneration of tissues.
    Jim Vincent, Biogen's Chairman and Chief Executive Officer, said,
"We are pleased to be working with Ontogeny.  Biogen is dedicated to
staying at the forefront of disease-directed biological research, and
developmental biology represents a major new approach to drug
development.  Ontogeny possesses strong core technologies, proprietary
positions and solid data validating the role of the 'Hedgehog' protein
family.  Combined with Biogen's experience in commercializing promising
compounds, we believe this will be a productive collaboration."
    "Ontogeny and Biogen share a common vision," said Doros Platika,
M.D., President and Chief Executive Officer of Ontogeny.  "We believe
that developmental biology is a powerful system for the generation of
new therapeutic products that harness cells' and organs' natural growth
and differentiation mechanisms.  Product leads like the 'Hedgehog'
family have the ability to transform medicine as it is practiced today,
by creating organ-specific therapeutics that regenerate tissues damaged
by disease, aging, or trauma."
    The field of developmental biology focuses on the growth and
development of cells, tissues and organs.  Cell differentiation is
controlled by proteins known as inducing molecules that instruct cells
how to grow and what developmental pathways to take.  The same molecules
that act during development often also control normal cell regenerative
and repair processes in adults.  Ontogeny is harnessing these molecules
and mechanisms to focus on the regeneration of destroyed or damaged
cells.  An early target is the regeneration of specific neurons
associated with disease.
    The initial focus of the research collaboration between Biogen and
Ontogeny will be on disorders of the Central Nervous System (CNS),
including Parkinson's Disease and Amyotrophic Lateral Sclerosis.
    Biogen, Inc., headquartered in Cambridge, MA, is a biopharmaceutical
company principally engaged in discovering and developing drugs for
human healthcare through genetic engineering.  The Company's revenues
are generated from U.S. sales of AVONEX(TM) (Interferon beta-1a) for
treatment of relapsing forms of multiple sclerosis, and from the
worldwide sales by licensees of a number of products, including alpha
interferon and hepatitis B vaccines and diagnostic products.  Biogen is
focused primarily on developing and testing novel products for multiple
sclerosis, inflammatory and respiratory diseases and certain viruses and
cancers.
    Ontogeny, Inc., headquartered in Cambridge, MA, was formed in
September 1994. Ontogeny is the leader in the pioneering field of
developmental biology.  Its research and development are based on recent
breakthroughs, including the discovery of control molecules (inducing
molecules) that cause cell and tissue differentiation.  Ontogeny is
commercializing therapeutics for neurological diseases, including
Parkinson's and Alzheimer's, as well as diabetes and bone and cartilage
problems, including osteoporosis and fractures.