Genome Therapeutics Divests GenomeVision Services Unit to Agencourt Bioscience; Customers and Certain Personnel Expected to Transfer to Privately-Held Firm.Business Editors/Health/Medical Writers WALTHAM, Mass. and BEVERLY, Mass.--(BUSINESS WIRE)--Feb. 25, 2003 Genome Therapeutics (Nasdaq: GENE) has entered an agreement with privately held Agencourt Bioscience for the sale and transfer of GenomeVision(TM) Services, the custom genomic sequencing genomic sequencing The sequencing of the entire genome of an organism. A Closer Look The technique that allows researchers to read and decipher the genetic information found in the DNA of anything from bacteria to plants to animals is service business of Genome Therapeutics. As part of the agreement, Genome Therapeutics will transfer its sequencing operations, including certain equipment and personnel to Agencourt. Genome Therapeutics will receive a percentage of revenues from commercial and government customers, transferred to Agencourt, for a period of two years, as well as an undisclosed equity stake in Agencourt. Genome Therapeutics retains rights to its PathoGenome(TM) Database product, including all associated intellectual property, subscriptions and royalty rights on products developed by subscribers. Additional financial terms were not disclosed. "Agencourt has rapidly emerged as a leading player in the custom sequencing marketplace. By engaging in this transaction, we believe our GenomeVision Services unit will flourish and - more importantly - that our customers will continue to receive industry-leading services and superior results," stated Steven M. Rauscher, President and Chief Executive Officer of Genome Therapeutics. "Strategically, this move fits well for both companies, as we continue to focus on our product pipeline and as Agencourt continues to expand its customer base and solidify its position as the leader in this field. Furthermore, we retain the capabilities necessary to satisfy the research needs of our existing product-focused alliances, as well as potential new alliances." As part of this agreement, Lynn Doucette-Stamm, Ph.D., GenomeVision Services Vice President and General Manager, will join Agencourt in the newly created position of Vice President, Business Development. Certain other employees of GenomeVision Services will be interviewed and considered for positions at Agencourt. Through this divestiture, it is expected that approximately 60 full-time positions will be eliminated, bringing the total number of Genome Therapeutics employees to 95. Accounting for one-time severance costs, reduced overhead expenses and projected revenues received by Genome Therapeutics as part of this agreement, Genome Therapeutics management expects 2003 results to remain within the projected $20-25 million loss range. "We are very excited about the acquisition of GenomeVision Services as it continues to build on our goal to establish Agencourt as the premier supplier of high quality, cost effective discovery solutions for the pharmaceutical and biotech marketplace," said Brian McKernan, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Agencourt Bioscience. "The union between Agencourt and GenomeVision is extremely complementary and provides Agencourt with additional momentum to deliver top notch customer service and innovative discovery solutions to our customers. We welcome Lynn Doucette-Stamm and her GenomeVision Services colleagues to our team and look forward to their future contributions to our organization." About Agencourt Bioscience Corporation Agencourt Bioscience Corporation is a provider of genomic services and nucleic acid nucleic acid, any of a group of organic substances found in the chromosomes of living cells and viruses that play a central role in the storage and replication of hereditary information and in the expression of this information through protein synthesis. purification products that help biotech and pharmaceutical companies improve the effectiveness and efficiency of their drug development pipelines. Agencourt's Discovery Solutions(TM) suite of genomic and functional genomic services include high throughput sequencing, SAGE(TM) sequencing, SNP SNP Scottish National Party Noun 1. SNP - (genetics) genetic variation in a DNA sequence that occurs when a single nucleotide in a genome is altered; SNPs are usually considered to be point mutations that have been evolutionarily discovery and genotyping. The company's purification products and services are based on the proven and patented Solid Phase Reversible Immobilization Immobilization Definition Immobilization refers to the process of holding a joint or bone in place with a splint, cast, or brace. This is done to prevent an injured area from moving while it heals. (SPRI SPRI Scott Polar Research Institute (University of Cambridge) SPRI Single Ply Roofing Institute SPRI Schering-Plough Research Institute (Corporate division) (TM)) technology, which has been used to sequence over 20 billion base pairs of high-quality DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. or more than one-third of the human genome The human genome is the genome of Homo sapiens, which is composed of 24 distinct pairs of chromosomes (22 autosomal + X + Y) with a total of approximately 3 billion DNA base pairs containing an estimated 20,000–25,000 genes. . Several of Agencourt's founders worked at the Whitehead Institute Founded in 1982, the Whitehead Institute for Biomedical Research is a non-profit research and teaching institution located in Cambridge, Massachusetts. The Whitehead Institute was founded as a fiscally independent entity from Massachusetts Institute of Technology, and its members Center for Genome Research Genome Research is the title of a peer-reviewed scientific journal published by Cold Spring Harbor Laboratory Press. The focus of the journal is on genome-wide studies in any organism, including single gene studies that are placed in a genomic context. , and have significant experience in combining the chemistries and instrumentation for high-throughput genomics. Agencourt is located in Beverly, Mass. and is available on the Web at www.agencourt.com. About Genome Therapeutics Genome Therapeutics is a biopharmaceutical company focused on the discovery and development of pharmaceutical and diagnostics products. The Company's first product candidate, Ramoplanin, is in a Phase III clinical trial Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the for the prevention of bloodstream infections caused by vancomycin-resistant enterococci enterococci bacteria in the genus Enterococcus. (VRE VRE vancomycin-resistant enterococcus. VRE Vancomycin-resistent enterococcus, see there ) and a Phase II trial for the treatment of Clostridium-difficile associated diarrhea. Genome Therapeutics' biopharmaceutical business includes seven major product discovery alliances with several pharmaceutical companies including Schering-Plough, AstraZeneca, Wyeth, Amgen and bioMerieux. This news release may contain forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements represent our management's judgment regarding future events. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "expect," "intend," "anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently. We do not plan to update these forward- looking statements. You should be aware that our actual results could differ materially from those contained in the forward- looking statements due to a number of risks affecting our business. These risk factors include risks related to our lead product candidate, Ramoplanin, such as (i) our inability to obtain regulatory approval to commercialize Ramoplanin due to negative, inconclusive or insufficient clinical data and (ii) delays in the progress of our clinical trials for Ramoplanin, and increased cost, due to the pace of enrollment of patients in the trials or fluctuations in the infection rate of enrolled patients. We are also subject to risks related to our inability or the inability of our alliance partners to (i) successfully develop products based on our genomics information, (ii) obtain the necessary regulatory approval for such products, (iii) effectively commercialize any products developed before our competitors are able to commercialize competing products or (iv) obtain and enforce intellectual property rights. In addition, we are subject to the risk factors set forth in Exhibit 99.1 to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001 and those set forth in other filings that we may make with the Securities and Exchange Commission from time to time. |
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