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GlycoFi and Merck & Co., Inc. Enter into Broad Strategic Alliance for Research and Development

[No financial terms have been disclosed, which is as expected because GlycoFi is a private company. Although there is no immediate threat, holders of GTCB and Pharming will want to watch developments under this collaboration to assess the potential for GlycoFi’s platform to compete with protein production in transgenic animals.]

http://biz.yahoo.com/bw/051212/20051212005036.html?.v=1

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Multi-Year Collaboration to Develop Merck Products on GlycoFi Platform

LEBANON, N.H.--(BUSINESS WIRE)--Dec. 12, 2005--GlycoFi today announced that it has established a broad strategic alliance and multi-year research collaboration with Merck & Co., Inc. The alliance will focus on the use of GlycoFi's yeast-based glycoprotein optimization platform to develop novel biologic and vaccine drug candidates. GlycoFi and Merck scientists will work together to deploy GlycoFi's technology to produce and optimize various pharmaceutical properties of a broad range of Merck's biologic drug candidates, including vaccines, antibodies, and other therapeutic proteins.

Under the terms of the agreement, Merck will make an upfront cash payment and an equity investment in GlycoFi, and fund GlycoFi's research efforts taking place under the program. GlycoFi is eligible to receive milestone payments as products from the collaboration move through development, and a royalty on sales of commercialized products.

"We are encouraged by the potential of the GlycoFi technology to optimize the glycan structures, and thereby the biologic properties of our drug candidates," said John Shiver, Ph.D., Vice President, Vaccine and Biologics Research at Merck. "GlycoFi's technology fits well with our broader corporate strategy regarding biologic drug candidates."

"We are pleased to begin this significant discovery effort with Merck," said Tillman Gerngross, Chief Scientific Officer of GlycoFi. "Merck is an excellent partner because of their extensive experience with yeast-based protein production. We look forward to combining Merck's expertise with GlycoFi's ability to create optimized drug candidates across several different classes of molecules."

About GlycoFi

GlycoFi is a private, venture-backed, biotechnology company whose investors include Polaris Venture Partners, SV Life Sciences, Boston Millennia Partners, and Fletcher Spaght Ventures. GlycoFi leverages its pioneering protein optimization technology to develop, produce and commercialize Next Generation Biotherapeutics(TM), alone and in partnership with other leading biopharmaceutical companies. For additional information please visit www.glycofi.com.
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