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Metabasis Therapeutics Announces That
Its Collaborator Merck & Co., Inc. Has Selected a Lead AMPK
Activator for Late Preclinical Development and Has Agreed to
Make a One-Time Payment for All Remaining Financial Obligations
SAN DIEGO--(BUSINESS WIRE)--Jun. 10, 2009-- Metabasis
Therapeutics, Inc. (Nasdaq: MBRX) announced today that its four
year research collaboration with Merck & Co., Inc. ("Merck"),
focused on the discovery and development of AMP protein kinase
(AMPK) activators, has yielded a lead candidate that Merck has
selected to advance into late preclinical development. In
addition, under an amended agreement, Merck has agreed to pay
Metabasis a one-time fee of $6 million that satisfies all future
obligations for milestones and royalty payments.
Metabasis and Merck entered into a collaboration and license
agreement in June 2005 focused on the discovery, development and
commercialization of AMPK activators for the treatment of
various metabolic diseases. As part of the original agreement,
Metabasis received funding for a three year research term, which
was extended by another year, through June 2009. Also in the
original agreement, Metabasis received an upfront payment of $5
million, funding for its research contribution to the program,
and was eligible to receive payments upon achievement of certain
milestones associated with the development of a product
candidate, as well as a royalty on net sales should a product be
commercialized.
Metabasis reported in May that it had restructured the Company
due to difficulties in raising capital from a financing or other
sources. Metabasis continues to seek additional capital to
satisfy its current obligations and to fund its ongoing
operations. Even with the $6 million payment described above, if
the Company is unsuccessful in the near-term in raising
additional capital, the Company may be forced to cease its
operations entirely.
About Metabasis (www.mbasis.com):
Metabasis is a biopharmaceutical company that has established a
broad pipeline of product candidates and advanced discovery
programs targeting large markets with significant unmet needs.
The Company’s product pipeline includes clinical-stage product
candidates and advanced discovery programs for the treatment of
metabolic diseases such as diabetes and hyperlipidemia, as well
as product candidates and advanced discovery programs for the
treatment of liver diseases such as hepatitis and primary liver
cancer.
Forward-Looking Statements:
Statements in this press release that are not strictly
historical in nature constitute "forward-looking statements."
Such statements include, but are not limited to, Metabasis’
ability to raise additional capital; and Metabasis’ ability to
continue operations. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which
may cause Metabasis' actual results to be materially different
from historical results or from any results expressed or implied
by such forward-looking statements. These factors include, but
are not limited to, risks and uncertainties related to Metabasis'
ability to obtain additional financing to support its
operations; the progress and timing of clinical trials for
Metabasis' product candidates; the fact that positive results
from preclinical studies and early clinical trials does not
necessarily mean later clinical trials will succeed;
difficulties or delays in development, testing, obtaining
regulatory approval, producing and marketing Metabasis' product
candidates; serious adverse side effects or inadequate efficacy
of, or serious adverse events related to, Metabasis' product
candidates or proprietary technologies; the risk that Metabasis
will not be able to build more value or retain rights for direct
commercialization of its product candidates; Metabasis'
dependence on its licensees and collaborators for the clinical
development and registration of, as well as information relating
to, certain of its product candidates; potential conflicts with
collaborators that could delay or prevent the development or
commercialization of Metabasis' product candidates; the scope
and validity of intellectual property protection for Metabasis'
product candidates, proprietary technologies and their uses;
competition from other pharmaceutical or biotechnology
companies; Metabasis’ ability to generate financing through
partnerships; Metabasis’ ability to regain compliance with
Nasdaq listing requirements; and other factors discussed in the
"Risk Factors" section of Metabasis' Quarterly Report on Form
10-Q for the quarter ended March 31, 2009. All forward-looking
statements are qualified in their entirety by this cautionary
statement. Metabasis is providing this information as of this
date of this release and does not undertake any obligation to
update any forward-looking statements contained in this release
as a result of new information, future events or otherwise.
Source:
Metabasis Therapeutics, Inc.
Investor Relations, (858) 622-2223
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