Corange International Ltd. has agreed to pay up to $50 million toSequana Therapeutics Inc. for the discovery of genes related toosteoporosis, giving the La Jolla, Calif. genomics company its secondmajor corporate partnership in less than a month.
The deal was first announced in May when Bermuda-based Corangepaid $2 million for an exclusive option on the research collaborationpending negotiation of the final terms of the agreement. (SeeBioWorld Today, May 5, p. 1.)
In exercising the option, Corange will make a $6.25 million equityinvestment over the next five years and provide another $14.75million for research funding and milestone payments. Sequana couldreceive another $28 million based on development of potential drugsand diagnostics from the genetic discoveries, making the total valueof the deal worth about $51 million.
The agreement gives Corange and its Germany-based subsidiary,Boehringer Mannheim GmbH, worldwide rights to develop andmarket the products. Sequana also would be paid royalties.
Signing of the Corange collaboration comes about a month afterSequana entered a potential $70.5 million deal with BoehringerIngelheim GmbH, another German company, for discovery of geneticdefects contributing to asthma.
Sequana last month also registered with the Securities & ExchangeCommission to take the company public with an initial offering of 3million shares at between $12 and $14 per share. The initial publicoffering has not yet been held.
Sequana has three major corporate partnerships. The third agreement,signed in July 1994, is with Glaxo Holdings plc, of London, foridentification of genes linked to Type II diabetes. In that deal, Glaxopaid $1 million up front and another $4 million for certain researchexpenses. Sequana will receive additional research funding andmilestone payments from Glaxo, but specific terms have not beendisclosed. n
-- Charles Craig
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