3rd Nov 2005 07:01
Stem Cell Sciences plc03 November 2005 FOR IMMEDIATE RELEASE Stem Cell Sciences Grants Lexicon Genetics Exclusive License to IRES technology The Woodlands, Texas and Edinburgh, Scotland, November 3, 2005 - LexiconGenetics Incorporated (Nasdaq: LEXG) and Stem Cell Sciences plc (AIM: STEM)announced today a significant expansion related to Lexicon's rights to SCS'sproprietary Internal Ribosome Entry Site ("IRES") technology for geneticallymodified mice. IRES technology is commonly used to enhance the accuracy of geneexpression in genetically altered mice and cultured stem cells. As part of this expansion, SCS has granted to Lexicon an exclusive license tothe IRES technology, subject to non-exclusive licenses previously granted by SCS. The term of this exclusive license extends through the life of the IREStechnology patents and provides Lexicon with the right to grant sub-licenses inthe United States and Europe. Lexicon obtained a non-exclusive research licenseto the IRES technology in 2004 and has used the IRES technology in conjunctionwith its patented gene targeting technology to effectively translate reportergenes in genetically altered mice and mouse embryonic stem cells. In consideration for this exclusive license, Lexicon will provide SCS with anupfront payment and share with SCS future revenues generated by sublicenses tothe IRES technology. In addition, Lexicon has granted SCS certain non-exclusiverights under patents controlled by Lexicon covering its proprietary genetargeting technology for use in stem cell and progenitor cell lines. "Given the complementary nature of our technologies and Lexicon's success inlicensing its proprietary gene targeting technology to biotechnology andpharmaceutical companies, we believe Lexicon is the ideal partner to develop thefull commercial value of our IRES patent position with respect to mouse models,"said Peter Mountford, Ph.D., president and chief executive officer of SCS."Importantly, this agreement also enables SCS to expand the range of products itcan offer to pharmaceutical company customers from its stem cell-based drugdiscovery platform." "We have used IRES technology to enhance our ability to detect the expression ofgenes within tissues and individual cells, thereby increasing the power of ourin vivo models for gene function discovery," said Brian Zambrowicz, Ph.D.,executive vice president of research at Lexicon. "As a result of our experiencewith the technology, we recognized the value of adding this exclusive license toour already substantial patent estate in the area of gene knockout technology." About Stem Cell Sciences Stem Cell Sciences has been a leading company in the stem cell research arenasince 1994. It is focused on technologies to grow, differentiate, geneticallymodify and purify stem cells and stem cell derived cell products. The SCS grouphas its headquarters in Edinburgh, United Kingdom and has operations inMelbourne, Australia and Kobe, Japan. It is expanding operations in 2006 toCambridge, U.K. and the United States. The new U.K. site in Cambridge will focuson automation of cell-based drug discovery assays for the pharmaceuticalindustry. The U.S. expansion will initially be based on licensing opportunitiesof key SCS technologies, including Stem Cell Selection and novel Neural Stemcells reported in August this year. Stem Cell Sciences plc is listed on theLondon Stock Exchange Alternative Investment Market under the code STEM. About Lexicon Genetics Lexicon Genetics is a biopharmaceutical company focused on the discovery anddevelopment of breakthrough treatments for human disease. Lexicon issystematically discovering the physiological and behavioral functions of genesto identify potential points of therapeutic intervention, or drug targets.Lexicon makes these discoveries using its proprietary gene knockout technologyto model the physiological effects that could be expected from prospective drugsdirected against novel targets. The Company has advanced knockout-validatedtargets into drug discovery programs in six therapeutic areas: diabetes andobesity, cardiovascular disease, psychiatric and neurological disorders, cancer,immune system disorders and ophthalmic disease. Lexicon is working bothindependently and through strategic collaborations and alliances to acceleratethe development and commercialization of its discoveries. Additional informationabout Lexicon is available through its corporate website,www.lexicon-genetics.com. Lexicon Genetics Safe Harbor Statement This press release contains "forward-looking statements," including statementsabout Lexicon's growth and future operating results, discovery and developmentof products, strategic alliances and intellectual property, as well as othermatters that are not historical facts or information. These forward-lookingstatements are based on management's current assumptions and expectations andinvolve risks, uncertainties and other important factors, specifically includingthose relating to Lexicon's ability to successfully conduct preclinicaldevelopment of its drug candidates and advance such candidates into clinicaldevelopment, achieve its operational objectives, obtain patent protection forits discoveries and establish strategic alliances, as well as those relating tomanufacturing, the regulatory process, intellectual property rights, and thetherapeutic or commercial value of its drug candidates, that may cause Lexicon'sactual results to be materially different from any future results expressed orimplied by such forward-looking statements. Information identifying suchimportant factors is contained under "Factors Affecting Forward-LookingStatements" and "Business - Risk Factors" in Lexicon's annual report on Form10-K for the year ended December 31, 2004, as filed with the Securities andExchange Commission. Lexicon undertakes no obligation to update or revise anysuch forward-looking statements, whether as a result of new information, futureevents or otherwise. # # # Contacts: Stem Cell Sciences: Peter Mountford President and Chief Executive Officer+44 (0) 131 662 [email protected] Weber Shandwick / Square Mile:Yvonne AlexanderEuropean PR+44 (0) 207 067 [email protected] Lexicon Genetics: Bobbie Faulkner Manager, Investor Relations +1 (281)863-3503 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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