EXHIBIT 99.1
SERAGEN, INC., 00 Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxxxxxx 00000
FOR IMMEDIATE RELEASE
_____________________
For more information, contact Xxxx Xxxxxx
Seragen, Inc.
Phone: 000-000-0000
SERAGEN RESTRUCTURES AGREEMENT WITH AJINOMOTO
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HOPKINTON, MA--June 10, 1997--Seragen, Inc. (Nasdaq:SRGN) announced today
that Xxxxxxx and Ajinomoto Co., Inc. of Japan have amended their existing
license agreement to reduce substantially and defer Seragen's financial
obligations to Ajinomoto. As part of the restructuring, Xxx Xxxxx and Company
has entered into a separate licensing arrangement with Ajinomoto. In
addition, Xxxxx has agreed to assume most of Xxxxxxx's remaining obligation,
subject to certain conditions. Xxxxx and Xxxxxxx are collaborating on the
development of Interleukin-2 (IL-2) Fusion Protein for cutaneous T-cell
lymphoma (CTCL).
In 1994, Seragen and Ajinomoto signed agreements that granted Seragen
worldwide rights to certain IL-2 gene patents owned by the Japanese Foundation
for Cancer Research and Ajinomoto for potential use in the development of
Seragen's IL-2 Fusion Protein.
"Xxxxx and Ajinomoto have greatly assisted us in our financial restructuring
efforts," said Xxxxxxx's chairman and CEO, Xxxx Xxxxx. "We appreciate their
willingness to work together to seek a solution that benefits all three
companies, as well as the patients who will ultimately benefit from IL-2
Fusion Protein."
Xxxxxxx has disclosed the details of the agreements with both Ajinomoto and
Xxxxx in a Form 8-K filed with the Securities and Exchange Commission.
"If we meet all the conditions stipulated by this series of agreements,
Xxxxxxx will realize a net cash savings in excess of $3 million over the next
three years compared to our previous agreements with Ajinomoto and Xxxxx,"
explained Mr. Xxxxx. "Furthermore, our overall royalty rate payable to
Ajinomoto upon sales of IL-2 Fusion Protein has been reduced significantly.
We believe this restructuring will help us in our efforts to seek additional
capital and to enter into other partnerships to commercialize our technology."
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Seragen Restructures Agreement with Ajinomoto / page 2 of 2
Seragen is a biopharmaceutical company developing a proprietary portfolio of
therapeutic products. The company's unique receptor-active fusion proteins
consist of a toxin fragment genetically fused to a hormone, or growth factor,
that targets specific receptors on the surface of disease-causing cells.
Xxxxxxx's current focus is on cancer and dermatology. The company's most
advanced product, IL-2 Fusion Protein, is in Phase III clinical trials for
cutaneous T-cell lymphoma, in collaboration with Xxxxx. Seragen is
independently conducting clinical trials of the same product for psoriasis. A
second product, EGF Fusion Protein, is currently in a Phase I/II clinical
trial for non-small cell lung cancer.
Safe Harbor Information
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Some of the statements contained in this document are forward-looking,
including statements relating directly or by implication to Xxxxxxx's
products, operations, strategic partnerships, and ability to fund its
operations. These statements are based on current expectations and involve a
number of uncertainties and risks, including (but not limited to) Xxxxxxx's
ability to proceed with successful development, testing, and licensing of its
products and Xxxxxxx's ability to enter into additional strategic partnerships
and other collaborative arrangements or to raise additional capital on
satisfactory terms. For further information, refer to the "Business Outlook"
section in Seragen's Form 10-K as filed with the Securities and Exchange
Commission. Actual results may differ materially from such expectations.
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