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Pharmaceutical industry

Hoechst Marion Roussel and Cell Genesys Launch Gene Therapy Collaboration for AIDS Treatment

Strategic Insights

— 1 min read

Hoechst Marion Roussel, the global pharmaceutical division of Hoechst AG, has signed a gene therapy collaboration with Cell Genesys, Inc., a biotechnology company based in California. The initial focus of the collaboration is the research and development of gene therapy technologies and products for acquired immune deficiency syndrome (AIDS). This collaboration aims to place Hoechst Marion Roussel at the forefront of gene therapy, a promising approach that could significantly contribute to the treatment of AIDS and other life-threatening diseases.

Key Takeaways:

  • The collaboration involves the genetic engineering of killer T cells to selectively destroy virally infected cells, potentially making them resistant to HIV.
  • Cell Genesys is leading the scientific basis of the collaboration, while Hoechst Marion Roussel will develop and market products worldwide, with Cell Genesys retaining an option to co-promote them in North America.
  • Hoechst Marion Roussel will purchase approximately 13 percent of Cell Genesys' outstanding common stock for $20 million and provide up to $30 million in milestone payments and research funding.
  • Hoechst Marion Roussel will pay approximately $100 million for the successful development of a gene therapy product, with more than $50 million committed over the next two years.
  • The long-term objective of the collaboration is to create Universal Donor Cells with anti-HIV characteristics that can be prepared in advance, stored, and marketed like traditional pharmaceutical products.
  • Hoechst Marion Roussel brings expertise and research results from Massachusetts General Hospital, part of the long-term program in molecular biology funded by Hoechst.

Statistics:

  • Hoechst Marion Roussel will purchase 13 percent of Cell Genesys' outstanding common stock for $20 million.
  • Up to $30 million in milestone payments and research funding will be provided.
  • Pause of approximately $100 million will be paid for successful development of a gene therapy product.
  • More than $50 million is committed over the next two years.
  • 140 employees work at Cell Genesys.

Sources:

  • Hoechst Marion Roussel's announcement on PRNewswire, October 10th.
  • Cell Genesys' Nasdaq listing as CEGE.

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