Genopsys Offers Royalty-Free Access to Proprietary Directed Evolution Tools for Developing Anti-Cancer Products.

Business Editors/Health & Medical Writers

BIOWIRE2K

SANTA CRUZ, Calif.--(BUSINESS WIRE)--Sept. 25, 2002

Genopsys, Inc. today announced the availability of patented molecular randomization technology on a royalty-free basis in the cancer field through the company's Project Against Cancer (PAC) program. Under the terms of the PAC program, therapeutic and diagnostic products for use in oncology developed by companies or institutions with a PAC license will not be subject to royalties on sales of the products.

The novel technologies of Genopsys covered in the program are: DISMAP technology which allows for the fully random deletion, insertion, or substitution of mono- or polynucleotides for the generation of optimized macromolecules; and RTRMAP technology, which permits the truncation of randomly sized fragments of DNA from the 3' or 5' ends of the gene to eliminate deleterious characteristics or functions. The methods are described in U.S. patents, #6,251,604 and #6,319,694, respectively.

Eric Lietz, Ph.D., founder and president of Genopsys, said, "We believe our technologies represent the next generation of molecular evolution tools for the acceleration of drug development, but as a start-up company we are limited in our ability to achieve timely application of our innovations. Our objective is to focus our own efforts in molecular diagnostics and selected optimization services initially, but to achieve broad utilization and recognition of the value of our tools through an out-licensing approach."

"We selected cancer because this disease continues to defy the best that bioscience has to offer. It also is a natural target for `personalized medicine' strategies, an area where our technologies can add significant value," Lietz said. "The decision to offer a license with no royalties, while unusual if not unprecedented, is a prudent business decision in view of the broad applicability of these tools in biomedicine and other fields."

"We believe that the benefit to Genopsys from waiving all claims to royalties for oncology products resulting from the application of our technologies will come from more rapid use in product development for other diseases as well as faster implementation of our own product and partnering programs," Lietz said.

Genopsys retains rights to certain molecular diagnostics applications that relate to several fields including diagnostic cancer applications the company is currently pursuing. The company is designing `enzyme cassettes' for use with a range of important cancer markers. The cassettes are expected to be more sensitive, efficient and economical than antibody methods.

Anthony L. Fink, Ph.D., professor of chemistry and biochemistry, University of California, Santa Cruz, and chairman of the company's scientific advisory board, said, "This program will speed the availability of new products for cancer patients through the rapid dissemination of powerful research tools and the elimination of a significant financial barrier to drug development."

Prior to making the PAC program available, Genopsys conducted a pre-notification program. Companies wishing to obtain exclusive licenses to cover ongoing programs were offered the opportunity to enter negotiations. The company is in discussions for such licenses with various biotechnology and pharmaceutical companies. The pre-notification period is scheduled to end October 30, 2002.

The general release of the PAC license is slated for November 1, 2002. The initial term of the licenses issued under the program is one year. PAC licensees are expected to pay an annual fee to offset administration of the licensing program.

Genopsys, Inc. was founded to develop and commercialize novel technologies that significantly improve protein optimization through fully random alteration of genes. Genopsys technologies enable the random insertion, deletion or substitution of randomly sized nucleotides for the generation of vast libraries related to the target gene. The resulting polynucleotides can be used to produce proteins with promising structures, functions and physical properties. Another company technology allows the truncation of randomly sized fragments from the 3' or 5' end of a gene allowing the elimination of molecular structure responsible for undesirable characteristics. Genopsys is focused initially on molecular diagnostics in the field of cancer. The company plans to develop efficient enzyme cassettes to identify tumor cells. Genopsys also offers a range of molecular engineering and optimization services to other companies. Founded in 1999, privately-held Genopsys is located in Santa Cruz, California. More information is available at www.genopsys.com.