Genzyme Molecular Oncology Receives $5 Million Patent Milestone Payment from Schering-Plough

Genzyme Molecular Oncology, a division of Genzyme Corporation, has announced the grant of a European patent covering p53 gene therapy and methods to detect loss of p53 function. This patent triggers a $5 million milestone payment to Genzyme Molecular Oncology from Schering-Plough Corporation, a research-based company engaged in the discovery, development, manufacturing and marketing of pharmaceutical and health care products worldwide. The payment is in addition to the $10 million already received from Schering-Plough, and Genzyme Molecular Oncology has the potential to receive up to an additional $30 million in patent, product development and sales milestone fees.

Key Takeaways:

• Genzyme Molecular Oncology has received a $5 million milestone payment from Schering-Plough under the terms of their October 1998 agreement.
• The grant of the European patent triggers the payment, which is in addition to the $10 million already received from Schering-Plough.
• Genzyme Molecular Oncology has the potential to receive up to an additional $30 million in patent, product development and sales milestone fees.
• The company is developing a new generation of cancer products, focusing on cancer vaccines and angiogenesis inhibitors, and has completed two Phase I cancer vaccine trials in melanoma.
• Genzyme Molecular Oncology is developing novel cancer products through the integration of its gene discovery, gene therapy, small-molecule drug discovery, protein therapeutic and genetic diagnostic efforts.
• The company has a division of its own common stock, intended to reflect its economic value and track its performance.
• The patent grant is an excellent example of Genzyme Molecular Oncology's strategy of leveraging its intellectual property to raise funds to invest in research and development efforts.
• The company's president, Gail Maderis, stated: "This milestone payment is an excellent example of our strategy of leveraging our intellectual property to raise funds to invest in our research and development efforts."

Statistics:

• $5 million: the milestone payment received from Schering-Plough under the terms of their October 1998 agreement.
• $10 million: the amount already received from Schering-Plough.
• $30 million: the potential payment for patent, product development and sales milestone fees.
• 50%: the percentage of human cancers with p53 gene functionally deficient.
• October 1998: the month in which Genzyme Molecular Oncology and Schering-Plough signed the agreement for the p53 gene therapy product.
• October: the month in which Genzyme Molecular Oncology received an up-front payment of $5 million from Schering-Plough.

Sources:

• Genzyme Corporation's press release, dated February 4.
• PRNewswire.
• Genzyme Corporation's website: http://www.genzyme.com.
• Genzyme's fax-on-demand service: 1-800-436-1443 within the United States or 1-201-521-1080 outside the United States.