Replies to post #57874 on Biotech Values

[DewDiligence]

Re: Teva acquisition of CoGenesys

The $400M price tag is identical to what MRK paid for GlycoFi in 2006 (#msg-11018747).

[DewDiligence]

Bad timing... or astute dealmaking?

Yesterday, Teva paid $400M to acquire CoGenesys (#msg-26163282), the HGSI spin-off that owns the rights to the albumin-fusion technology used in Albuferon.

Today, HGSI reveals a safety issue with Albuferon and HGSI shares plunge 45%.

Q: Was Teva blindsided by the Albuferon problem… or did Teva know about it and use it to negotiate a lower acquisition price?

[DewDiligence]

HGSI – It’s unclear to me why HGSI still has rights to the albumin-fusion technology that is the subject of this revised license with Novozymes.
I thought Teva had acquired the rights to such technology when it
bought HGSI’s CoGenesys subsidiary in early 2008 (#msg-26163212).

http://finance.yahoo.com/news/Human-Genome-Sciences-and-prnews-15162998.html

›Human Genome Sciences and Novozymes Announce Amendment to Albumin Fusion License Agreement

Thursday May 7, 2009, 7:00 am EDT

ROCKVILLE, Md. and NOTTINGHAM, UK, May 7 /PRNewswire-FirstCall/ -- Human Genome Sciences, Inc. (Nasdaq: HGSI - News) and Novozymes Biopharma, a part of Novozymes (Nasdaq: NZYM B), today announced that they have amended an existing license agreement to allow both companies to expand application of their proprietary albumin fusion technology.

Under the amended agreement, HGS and Novozymes each has the opportunity to exclusively license and/or sublicense a number of albumin fusion proteins in exchange for royalties and other consideration. No existing HGS or Novozymes products or product rights, including rights licensed to other companies, are affected by these amendments. Financial or other terms of the agreement were not disclosed.

"Genetic fusion of therapeutic proteins to albumin can improve the pharmacology of the proteins, resulting in important benefits to patients," said Barry A. Labinger, Executive Vice President and Chief Commercial Officer, HGS. "For example, with certain therapeutic proteins, albumin fusion may make it possible to dose less frequently and reduce side effects associated with injections. We are pleased to work with Novozymes to broaden the application of albumin fusion technology to new classes of proteins and peptides."

Thomas Videbaek, Executive Vice President, Novozymes, said, "We are delighted to expand this license agreement with HGS. We license both the fusion protein and the yeast expression systems, which have been optimised for producing albumin fusion proteins as the solution that provides an efficacious half-life in patients. Our strength lies in the fact that we focus on solutions and that is why Novozymes is an ideal partner for the pharmaceutical industry. This enables Novozymes to continue to further develop albufuse®, our proprietary albumin fusion technology, and advance our existing and new partnerships."

About Human Genome Sciences

The mission of HGS is to apply great science and great medicine to bring innovative drugs to patients with unmet medical needs. The HGS clinical development pipeline includes novel drugs to treat hepatitis C, lupus, inhalation anthrax and cancer. For more information about HGS, please visit the Company's web site at www.hgsi.com.

About Novozymes

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries we create tomorrow's industrial biosolutions, improving our customers' business and the use of our planet's resources.

With over 700 products used in 130 countries, Novozymes' bioinnovations improve industrial performance and safeguard the world's resources by offering superior and sustainable solutions for tomorrow's ever-changing marketplace.

Novozymes' natural solutions enhance and promote everything from removing trans fats in cooking, to advancing biofuels to power the world tomorrow. Our never-ending exploration of nature's potential is evidenced by over 6,000 patents, showing what is possible when nature and technology join forces.

Our 5,000+ employees working in research, production and sales around the world are committed to shaping business today and our world tomorrow.

Detailed descriptions of the Company and its technologies can be viewed on the Company's website www.biopharma.novozymes.com.‹