Novartis and Gen-Probe Agree to Extend and Expand Blood Screening
Collaboration
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* Companies will work together to protect the world's supply of
donated blood from infectious diseases until 2025
* Partners anticipate continued expansion into new global markets
and development of innovative new products, including
next-generation PANTHER instrument
* Companies also plan exploratory collaboration in pharmacogenomics
Emeryville, CA, January 27, 2009 - Chiron, a Novartis (NYSE:NVS)
business, announced today that it has agreed to extend and expand its
blood screening collaboration with Gen-Probe (NASDAQ: GPRO) until
2025. The companies will continue to work together to develop and
commercialize molecular technologies that safeguard the world's
donated blood supply.
The collaboration between Novartis and Gen-Probe was established in
1998. It was previously scheduled to expire in 2013. Under the
original terms of the agreement, the companies shared revenue from
the sale of blood screening assays. Gen-Probe was responsible for
manufacturing costs, while Novartis was responsible for commercial
expenses. The companies shared research and development (R&D) costs.
"I am very pleased that our agreement with Gen-Probe has been
extended until 2025. Nucleic acid testing is an important tool to
safeguard the world's blood supply against harmful pathogens," said
Peter Maag, Global Head of Diagnostics, at Novartis Vaccines and
Diagnostics. "This renewed agreement with Gen-Probe provides a solid
foundation that enables us to continue our expansion into the
transfusion medicine market where we will provide innovative
solutions to blood centers worldwide."
About the Revised Agreement
Under the revised agreement, Gen-Probe will continue to be primarily
responsible for R&D and manufacturing. Novartis will remain
responsible for sales and marketing of the products, but will
collaborate more closely with Gen-Probe on sales, marketing and
distribution strategies. In addition to sharing R&D costs, the
companies will share manufacturing expenses. Gen-Probe also will
receive a percentage of end-user revenue that escalates gradually
from 2009 until 2015, and remains constant thereafter.
As part of the expanded agreement, Novartis has agreed to help fund
development of Gen-Probe's PANTHER instrument, a fully automated
molecular testing platform, for the blood screening market. The
companies also have agreed to evaluate, using Gen-Probe's
technologies, the development of companion diagnostics for current or
future Novartis medicines.
Unlike standard serological testing, nucleic acid testing (NAT)
detects viral RNA and DNA during earlier stages of infection,
shortening the window period from infection to detection. Scientific
models estimate that NAT reduces the infectious window period of
HIV-1, HCV and HBV from 35% to 91%, compared with standard
serological methods.[1]
Since 1998, Gen-Probe and Novartis have developed, manufactured and
commercialized nucleic acid tests and instrumentation that have been
used by blood banks to screen more than 125 million blood donations
in the United States alone. These tests have intercepted thousands of
units of blood that were infected with HIV-1, hepatitis C and B, and
West Nile virus, thereby preventing life-threatening diseases from
being passed along to transfusion recipients.
"Together these two companies have discovered and developed
innovative solutions for the screening and prevention of infectious
diseases to help protect the nation's blood supply," said William F.
Moore, Senior Vice President, Biomedical Services Operations,
American Red Cross. "We are pleased to see this successful
collaboration continue to focus on innovations and reinvestment in
technology that will help keep the blood supply as safe as possible."
Disclaimer
This release contains certain forward-looking statements relating to
the agreement concluded between Novartis and Gen-Probe for
blood-screening collaboration. Such forward-looking statements are
not historical facts and can generally be identified by the use of
forward-looking terminology such as "expected", "will", "estimated",
"would", "could", "potential", "may", "opportunities", "pipeline",
"further advance" or similar expressions, or by express or implied
discussions regarding potential future sales or earnings of Novartis;
or by discussions of strategy, plans, expectations or intentions or
potential synergies, strategic benefits or opportunities that may
result from the proposed acquisition. Such forward-looking statements
reflect the current plans, expectations, objectives, intentions or
views of Novartis with respect to future events and involve known and
unknown risks, uncertainties and other factors that may cause actual
results to be materially different from any future results,
performance or achievements expressed or implied by such statements.
In particular, there can be no guarantee that the proposed
acquisition will be completed in the expected form or within the
expected time frame or at all. Nor can there be any guarantee that
Novartis will achieve any particular future financial results or
future growth rates or that Novartis will be able to realize any of
the potential synergies, strategic benefits or opportunities as a
result of the proposed acquisition. Among other things, the
expectations of Novartis could be affected by unexpected regulatory
actions or delays or government regulation generally, as well as
other risks and factors referred to in Novartis AG's Forms 20-F on
file with the US Securities and Exchange Commission. Novartis is
providing the information in this release as of this date and does
not undertake any obligation to update any forward-looking statements
as a result of new information, future events or otherwise.
About Novartis
Dedicated to preventing transfusion-transmitted diseases, Chiron, a
Novartis business, delivers innovative blood screening solutions to
protect the world's blood supply. Beginning with the sequencing of
the HIV genome in 1984 and discovery of the Hepatitis C genome in
1987, Chiron has been a leader in making groundbreaking discoveries
and developing innovative solutions for the screening and prevention
of infectious diseases.
Novartis AG provides healthcare solutions that address the evolving
needs of patients and societies. Focused solely on healthcare,
Novartis offers a diversified portfolio to best meet these needs:
innovative medicines, cost-saving generic pharmaceuticals, preventive
vaccines, diagnostic tools and consumer health products. Novartis is
the only company with leading positions in these areas. In 2007, the
Group's continuing operations (excluding divestments in 2007)
achieved net sales of USD 38.1 billion and net income of USD 6.5
billion. Approximately USD 6.4 billion was invested in R&D activities
throughout the Group. Headquartered in Basel, Switzerland, Novartis
Group companies employ approximately 97,000 full-time associates and
operate in over 140 countries around the world. For more information,
please visit http://www.novartis.com.
References
[1.] Busch, MP, Evolving Approaches to Estimate Risks of
Transfusion-Transmitted Viral Infections: Incidence-Window Period
Model after Ten Years. Dax EM, Farrugia A, Vyas GN (editors):
Advances in Transfusion Safety - Volume IV, Developments in
Biologicals (Basel), Basel, Karger, 2007, vol 127, pp 87-112;
Kleinman SH, Busch MP, Assessing the impact of HBV NAT on window
period reduction and residual risk J Clin Virol 36 Suppl. 1 (2006)
S23-S29
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