Corange makes an additional $4 million equity investment in GeneMedicine.THE WOODLANDS, Texas--(BUSINESS WIRE)--Feb. 6, 1996-- GeneMedicine Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GMED) Tuesday announced that on Feb. 1, 1996, Corange Ltd., the parent company of the Boehringer Mannheim Group, purchased 418,629 shares of GeneMedicine common stock at $9.56 per share, a 20 percent premium to the 15-day average market price for the company's stock. With this purchase, Corange now owns 863,073 shares of GeneMedicine common stock, or approximately 7 percent of the company's shares outstanding. The equity investment was made under a share purchase agreement between GeneMedicine and Corange initiated in July 1995 as part of the multi-year collaborative agreement to develop gene therapy products to treat head and neck cancers and melanoma melanoma: see skin cancer. melanoma Dark-coloured malignant tumour of skin cells that produce the protective skin-darkening pigment melanin. . Corange also continues its research funding Research funding is a term generally covering any funding for scientific research, in the areas of both "hard" science and technology and social science. The term often connotes funding obtained through a competitive process, in which potential research projects are evaluated and of GeneMedicine at $1.25 million per quarter. If milestones are met, Corange will fund a total of $25 million of research and development and invest a total of $20 million in equity over the agreement's five-year period. To date, Corange has made payments to the company totalling $8.0 million in equity investments and approximately $5.85 million in research and development funding. Under the collaborative agreement, GeneMedicine also granted Corange a three-year option to expand the collaboration to include additional cancer indications. The total value of the collaboration to GeneMedicine is potentially more than $100 million in pre-commercial funding if specific milestones are met and the option to expand the field is exercised. GeneMedicine is engaged in the discovery and development of a new class of pharmaceutical products that incorporate genes ("gene medicines"). The company's gene medicines are designed for direct administration to patients to cause the production and distribution of therapeutic proteins within the body. GeneMedicine's non-viral technology platforms consist of a synthetic gene delivery system selected to deliver genes to a specific target and a plasmid-based gene expression system to control the level of protein production as well as the duration and location of gene expression. GeneMedicine is currently developing its non-viral technology platforms for lung airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. , skeletal muscle, the vascular endothelium endothelium /en·do·the·li·um/ (-the´le-um) pl. endothe´lia the layer of epithelial cells that lines the cavities of the heart, the serous cavities, and the lumina of the blood and lymph vessels. , solid tumors and liver hepatocytes. The company has demonstrated the in vivo in vivo /in vi·vo/ (ve´vo) [L.] within the living body. in vi·vo adj. Within a living organism. in vivo adv. function of several of these platforms, as well as certain pharmacological effects of genes in animal models of disease. GeneMedicine is developing its products through corporate alliances with major biotechnology and pharmaceutical companies. In addition to its collaboration with Corange, the company has a corporate partnership with Roche Bioscience in the areas of asthma, arthritis and transplant rejection transplant rejection Graft rejection, organ rejection, tissue rejection Immunology The constellation of host immune responses evoked when an allograft tissue is transplanted into a recipient; rejection phenomena may be minimized by optimal matching of MHC antigens . Corange Ltd., is a privately held Bermuda-based healthcare company. With its two brands, Boehringer Mannheim and DePuy, Corange recorded sales of $3.5 billion in 1994 and has operating companies operating company A business that engages in transactions with outsiders. in all major countries, employing 20,000 people worldwide. Boehringer Mannheim plays a major role in pharmaceutical research and development, utilizing the most advanced skills in medicine, biotechnology and systems technology. At Penzberg, in southern Germany The term Southern Germany (German: Süddeutschland) is used to describe a region in the south of Germany. The exact area defined by the term is not constant, but it usually includes Bavaria, Baden-Württemberg, and the southern part of Hesse. , the group operates one of the largest biotechnology facilities in Europe. CONTACT: GeneMedicine Inc., The Woodlands Angela Goodwin, 713/364-1150 |
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