Healthcare Industry News: belinostat
News Release - March 29, 2007
CuraGen Announces Definitive Agreement to Sell 454 Life Sciences to RocheConference Call to be Held Today at 10:00 A.M. EDT
BRANFORD, Conn., March 29 (HSMN NewsFeed) -- CuraGen Corporation (Nasdaq: CRGN ) and Roche today announced that 454 Life Sciences and Roche have signed a definitive merger agreement under which Roche will acquire 454 Life Sciences Corporation, a majority-owned subsidiary of CuraGen Corporation. Under the terms of the agreement 454 Life Sciences' shareholders will receive up to $154.9 million in cash of which Roche will pay $140 million in cash, and up to approximately $14.9 million will be received from the exercise of stock options issued and outstanding prior to the acquisition. Of the $140 million from Roche, $25 million will be placed in escrow for a period of 15 months. On a fully diluted basis, presuming exercise of all outstanding stock options, CuraGen expects to receive approximately $85 million before fees and expenses, of which approximately $14 million will be held in escrow.
"We are pleased to announce the successful implementation of this strategic initiative regarding 454 Life Sciences, which allows us to gain liquidity on our investment and to extend our runway to bring our oncology products to market," commented Frank M. Armstrong, M.D., President and Chief Executive Officer of CuraGen Corporation. "Already in 2007 we have strengthened our balance sheet by paying off our outstanding 2007 convertible debt of $66.2 million and we are now monetizing our investment in 454 Life Sciences. During the remainder of 2007, CuraGen will continue to generate important clinical trial results on velafermin, belinostat, and CR011-vcMMAE, that we believe will enable us to advance one or more of these products into Phase III development by 2008."
CuraGen established 454 Life Sciences as a majority-owned subsidiary in 2000 with the mission of developing and commercializing next-generation sequencing technology. 454 Life Sciences and Roche signed a research and marketing collaboration in May 2005 that extends until September 30, 2010, under which Roche Diagnostics has been acting as the exclusive worldwide distributor of the Genome Sequencer systems and associated reagents to all markets with the exception of regulated diagnostics. Through this acquisition, Roche Diagnostics will now obtain access to 454 Life Sciences' future generations of sequencing products and the use of 454 Sequencing(TM) in regulated diagnostic applications.
Roche plans to maintain the 454 Life Sciences facility in Branford, Connecticut with its 167 employees as a fully integrated part of the Roche Diagnostics organization.
This transaction, which is subject to certain closing conditions, including regulatory approvals, is expected to close in the second quarter of 2007. Approval by CuraGen shareholders or Roche shareholders is not required for the transaction to be consummated.
Conference Call Information
CuraGen will host a conference call today, Thursday, March 29, 2007 at 10:00 a.m. EDT to discuss the transaction. To listen live to the call, dial 877-272-5391 (domestic) or 706-758-4315 (international) and enter conference ID 4208668. A replay of the conference call will be available starting at 1:00 p.m. EDT on Thursday, March 29, 2007 through Sunday, April 29, 2007 by dialing 800-642-1687 (domestic) or 706-645-9291 (international). The passcode for the replay is 4208668.
A live audio webcast of the conference call also will be available on CuraGen's website at http://www.curagen.com. A replay of the webcast will be available starting at approximately 1:00 p.m. EDT and available for thirty days thereafter.
CuraGen Corporation (Nasdaq: CRGN ) is a biopharmaceutical company developing diverse approaches, including novel protein, antibody, antibody- drug conjugate and small molecule therapeutics. By leveraging the drug development strengths cultivated over the years, CuraGen expects to make a difference by advancing its promising therapeutics to address the unmet medical needs of patients with cancer and inflammatory diseases. CuraGen is focused on bringing velafermin, belinostat and CR011-vcMMAE through clinical development, and maintains a portfolio of earlier-stage compounds that have the potential to treat cancer and inflammatory diseases. CuraGen Corporation is headquartered in Branford, Connecticut. For additional information please visit www.curagen.com.
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to the planned sale of 454 Life Sciences Corporation and expected proceeds, the timing and expected results of our clinical programs, and the development and marketability of planned drugs, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "estimate," "expect," "intend," "is planned," "may," "should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including the risk that the sale of 454 Life Sciences Corporation may not be consummated and that any one or more of CuraGen's drug development programs will not proceed as planned for technical, scientific or commercial reasons or due to patient enrollment issues or based on new information from nonclinical or clinical studies or from other sources, the success of competing products and technologies, CuraGen's stage of development as a biopharmaceutical company, government regulation and healthcare reform, technological uncertainty and product development risks, product liability exposure, uncertainty of additional funding, CuraGen's history of incurring losses and the uncertainty of achieving profitability, reliance on research collaborations and strategic alliances, competition, patent infringement claims against CuraGen's products, processes and technologies, CuraGen's ability to protect its patents and proprietary rights and uncertainties relating to commercialization rights, as well as those risks, uncertainties and factors referred to in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 filed with the Securities and Exchange Commission under the section "Risk Factors," as well as other documents that may be filed by CuraGen from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. CuraGen is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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