Gene therapy start-up GeneMedicine Inc. announced Mondaythat it has licensed commercial rights to the gene for Factor IXfrom British Technology Group USA Inc.

GeneMedicine will receive a license for certain non-viral genetherapy products, and British Technology Group USA of GulphMills, Pa., will receive licensing fees, milestone payments androyalties on future sales. The exact financial terms of theagreement were not disclosed.

GeneMedicine of Houston intends to use the Factor IX gene tocreate a "gene medicine" for treating hemophilia B, a life-threatening blood disorder that affects 3,000 people in the U.S.The company uses a non-viral-vector approach to gene therapyin which therapeutic genes in synthetic vectors are targeted tospecific tissues via direct injection. For treating hemophilia B,the target tissue is muscle.

"Our future research includes the development of a genemedicine for the liver, which is the organ that normallyproduces the majority of the body's supply of blood clottingfactors," said Eric Tomlinson, president and chief executiveofficer of GeneMedicine.

In August, GeneMedicine received a $50,000 small businessinnovation research (SBIR) grant from the National Institute ofArthritis and Musculoskeletal and Skin Diseases to developgene medicines for skin diseases.

The company was spun off from Baylor College of Medicine in1992, backed with $1 million from D. Blech & Co. Inc. Itreceived $8.5 million in first-round financing in May fromBlech, Abingworth, Kleiner Perkins Caufield & Byers, NewEnterprise Associates, Schroder Ventures, Ventures Medical,SED Ventures and Community Technology Fund.

-- Jennifer Van Brunt Senior Editor

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