+++++++++++++++++++++++++ TWO OF AUTOGEN'S DIABETES AND OBESITY GENES FAST-TRACKED TO DRUG DEVELOPMENT
Australian biotechnology company Autogen Limited (ASX: AGT) is pleased to announce the signing of two new commercialisation and licensing deals with its European pharmaceutical partner Merck-Sante for genes associated with obesity and diabetes.
The deals mean that two of Autogen's genes, AGT 203 for diabetes and AGT 121 for obesity, are proving so promising that Merck-Sante is fast-tracking their development.
Merck-Sante will continue with further characterisation of both genes using both Autogen's eXpress Technology Platform and its own resources and technologies in Europe.
Merck-Sante's commitment to the genes as drug targets for obesity and diabetes moves Autogen steps closer to significant earnings. The deals confirm that Autogen will receive 5-7% royalty on sales if these genes lead to therapeutics to be sold in the multi-billion dollar diabetes and obesity markets.
The signing of the commercialisation and licensing deals follows Merck-Sante's recent milestone payment of Euro762,245 (A$1,390,378) to Autogen in recognition of the AGT203 discovery.
The new deals enhance Autogens international reputation as a strong biotech partner for pharmaceutical companies, according to Autogen's Business Development Director Dr James Campbell.
"Autogen now has four commercialisation and licensing agreements with Merck-Sante - two each for obesity (Beacon and AGT 121) and diabetes (Tanis and AGT 203). These 'most likely' drug candidates are underpinned by a significant portfolio of intellectual property, with 49 diabetes and obesity-related genes in different stages of patent protection".
Professor Greg Collier, CEO of Autogen added that "Merck-Sante's decision to exercise its option to license further discoveries from Autogen's expanding intellectual property portfolio confirms the high quality of leads that our discovery and validation laboratories are providing to our pharmaceutical partners."
It is further good news for the company which has dramatically improved its performance and bottom line in the past 8 months. "We have a new management team that is firmly committed to delivering on specific targets, and creating sustainable shareholder value," Professor Collier said.
