ZONAGEN, INC. ENTERS AGREEMENT WITH SCHERING AG, GERMANY, TO DEVELOP AND COMMERCIALIZE HUMAN APPLICATIONS OF IMMUNOCONTRACEPTIVE TECHNOLOGY
Agreement Includes Equity Investment in Zonagen THE WOODLANDS, Texas, Dec. 13 /PRNewswire/ -- Zonagen, Inc.
(NASDAQ: ZONA; Pacific: ZNG) and Schering Berlin, Inc. today announced that Zonagen and Schering AG, Germany have formed a collaboration for the development and international commercialization of human immunocontraceptive products based on Zonagen's proprietary zona pellucida technology. Under the agreement, Schering Berlin Venture Corporation, a subsidiary of Schering Berlin, Inc., is making an equity investment in Zonagen by purchasing 239,933 common shares, or seven percent of Zonagen's outstanding shares, for $2.5 million, or $10.42 per share. In addition, the collaboration includes funding of product development, milestone payments, and upon commercialization, a pre-determined percentage of product revenues for Zonagen.
Under the agreement, Zonagen will continue to conduct research studies of its zona pellucida technology, with a view to identifying and selecting a lead immunocontraceptive product for humans. Schering AG, Germany will then conduct the necessary preclinical and clinical development studies of this and subsequent immunocontraceptive products, and will seek the necessary regulatory approvals. Zonagen retains the manufacturing rights to the products, as well as the responsibility to develop scale-up manufacturing processes and production capabilities. Zonagen also retains certain marketing and manufacturing rights in India and China, and the right to co-promote the product in the United States. Schering AG, Germany has exclusive marketing rights in all other countries worldwide. Dr. Walter Klemann, head of the Fertility Control and Hormone Replacement Therapy Business Unit of Schering AG, Germany said: "Zonagen is pioneering the development of a new technology based on the zona pellucida. We believe the Zonagen technology can result in a new generation of advanced immunocontraceptive products, and this investment and collaborative agreement represent important steps in our ongoing commitment to the fields of endocrinology and fertility control." Joseph Podolski, president of Zonagen, commented that "We are pleased and honored to initiate this partnership with one of the world's most innovative pharmaceutical companies. Through this collaboration, we hope to combine the scientific insights of our R&D team with the clinical expertise and worldwide organizational strengths of Schering AG, Germany." Schering Berlin, Inc. is the United States management holding company of Schering AG, Germany. Schering Berlin, Inc. has three operating subsidiaries: Schering Berlin Venture Corporation, Berlex Laboratories Inc., and NOR-AM Chemical Company. Zonagen, Inc. is engaged in the development of products for reproductive health. The company's first products will originate from its proprietary and patented technology relating to the zona pellucida, the protein-rich shell surrounding a mammalian egg. Zonagen is seeking to establish the validity of its technology in veterinary markets that are relatively easy to access, while simultaneously developing major products for human use. -0- 12/13/93 /CONTACT: Joseph S. Podolski, president of Zonagen, 713-367-5892, or Christopher J. Taylor, account executive of Feinstein Partners, 617-577-8110, for Zonagen, or Wendy K. Neininger, director, corporate communications of Schering Berlin, 201-292-8043/ (ZONA)
CO: Zonagen, Inc.; Schering AG; Schering Berlin, Inc. ST: Texas IN: MTC SU: JVN
JL-CM -- NE003 -- 3015 12/13/93 08:46 EST
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|Date:||Dec 13, 1993|
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