Covance and Variagenics Enter Into Collaborative Pharmacogenomic Agreement
Helps Increase Success Rate of New Drugs, Design More Effective Clinical Trials |
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PRINCETON, New Jersey, August 11, 1999 — Covance (NYSE: CVD) announced today that it has entered into an agreement with Variagenics, Inc. to provide funding to Variagenics for the development of novel pharmacogenomic testing technologies. Variagenics is a leader in determining the effects of genetic variation on drug activity and treatment outcomes in clinical trials. Under the agreement, Covance will be the only contract research organization that may directly license Variagenics' technologies for providing genetic testing services in clinical trials.
These technologies will allow for the rapid detection of genetic variation to optimize drug treatments and to develop safer and more effective pharmaceutical products. Covance will offer these technologies in conjunction with its central laboratory services, the largest in the world dedicated exclusively to outsourced drug development. No additional terms were disclosed.
"We will help our pharmaceutical customers develop new medicines faster and more effectively by offering this licensed technology with the wide-range of central laboratory services that Covance offers," said William F. Campbell, PhD, Laboratory Director for Covance. "The use of genetic variation during drug development to adjust treatment regimens and improve disease definition may increase the success rate of new drugs in clinical trials and enhance their market potential."
"By identifying genetic factors causing variable responses to novel therapies, pharmaceutical and biotechnology companies will be able to bring safer and more effective treatments to patients sooner with less risk," said Taylor Crouch, President and CEO of Variagenics, Inc. "Through this relationship with Covance, developers of new therapies worldwide will benefit from the combination of Variagenics' advanced genetic variance discovery technologies and Covance's leading central laboratory services."
Covance will offer a comprehensive package of technologies developed by Variagenics that focus on the rapid identification of normal variance in human gene sequences and testing for these variances in clinical trial populations. Covance will be able to offer these services through its central laboratory facilities around the world, enhancing its ability to conduct testing for global clinical trials.
Covance's scientists are experienced in a number of genomic methodologies. Genotyping of a number of viruses including human immunoefficiency virus (HIV) is performed routinely by Covance to determine mutations or viral subtypes associated with resistance to specific antiviral drugs. The Company has also performed more than 100,000 polymerase chain reaction (PCR) assays to determine the amount of virus carried by individuals before, during, and after a study drug in studies for HIV, hepatitis (HCV and HBV), and others. Covance has central laboratory capabilities in Indianapolis, Indiana; Geneva, Switzerland; Cape Town, South Africa*, and Sydney, Australia.
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with 1998 revenues of $732 million, operations currently in 17 countries, and approximately 7,700 employees worldwide. Covance's purpose is to lead advancements in drug development through science, service, and shaping solutions. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through the Company's website at: www.covance.com.
Variagenics, Inc. identifies clinically important variances in genes that affect drug action and applies this information to the discovery and development of new pharmaceutical products, diagnostic products, and disease-management practices. Variagenics has a broadly enabling, proprietary technology platform for rapidly discovering normal genetic variations and establishing associations between variant genetic sequences and the clinical efficacy and safety of new pharmaceutical products. Variagenics is a privately held, venture-backed company located in Cambridge, Massachusetts.
Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including without limitation, the ability of Variagenics to develop pharmacogenomic testing technologies and the ability of Covance to exploit these technologies. Additional factors that could cause results to differ materially are discussed in Covance's recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K and other periodic reports.
* Services provided by an independent laboratory facility in Cape Town, South Africa.
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, revenue and earnings growth and restructuring charges, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, the success of the Company's reorganization, and other factors described in the Company's filings with the Securities and Exchange Commission.
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