Myriad Genetics, Inc. (NASDAQ: MYGN) and Hitachi , Ltd. (NYSE: HIT) today announced
a $26 million strategic alliance based upon Myriad's proprietary high-throughput
proteomic screening technology, ProNet(R). Under the terms of the agreement,
Hitachi and Myriad will exploit the ProNet(R) technology together in Japan and
Hitachi will establish a designated ProNet(R) facility to expedite the discovery of
novel protein-protein interactions for Japanese customers. Myriad will receive an
upfront license fee payment of $15 million and research funding totaling $11
million over 3 years.
Hitachi , one of the world's leading global electronics companies, established its
Life Science Group last year to promote the commercialization of biotechnology.
Hitachi plans to invest 6 billion yen in R&D in its first three years. Hitachi plans
to generate sales of 200 billion yen annually by 2010. Hitachi will initially focus
on bioinformatics services for DNA analyses and database services as well as
functional analyses of genes and proteins.
"Myriad is a worldwide leader in the application of protein interaction
technology to discover novel therapeutic targets. This alliance provides us with a
gateway into the Japanese pharmaceutical
market and Hitachi with state-of-the-art proteomics technology," said Peter
Meldrum, president and chief executive officer of Myriad Genetics, Inc.
"Hitachi's corporate expansion into the life science sector coupled with their
excellent international reputation make them an outstanding proteomics partner
for us in Japan. We anticipate a powerful and productive alliance."
ProNet(R) technology is an integrated system for the high throughput
identification of protein-protein interactions. These interactions allow for the
discovery of functional protein partners from human cDNA libraries, and
therefore the mapping of fundamental biochemical pathways such as cell growth
pathways, inter-cellular signaling pathways, cell aging and programmed cell
death. These pathways are cellular communication networks, which control
fundamental cellular processes and provide unique insight into disease
progression. In particular, ProNet(R) allows for the identification of key regulators
in these networks, which are then evaluated for their potential to be modified to
interrupt the disease process. This provides a pragmatic means of identifying
exciting new high-potential drug targets.
"We are pleased to be working with Myriad Genetics, a leader in the proteomics
field, for our expansion into the life science arena," said Hiroya Taguchi, Chief
Executive Officer of the Life Science Group at Hitachi. "After a thorough review
of the U.S. proteomics industry, Hitachi has selected Myriad's ProNet(R) system
because it provides the state of the art, high-throughput technology necessary to
launch our entry into the field. We will use it to aid our Japanese collaborators to
investigate the biological networks of protein interactions and pathways
involved in the progression of disease, define optimal drug targets and thereby
accelerate drug development."
The recent accomplishments toward sequencing the human genome further
emphasize the need for technologies capable of identifying the function of genes
and assessing which of the estimated 100,000 or more genes represent valuable
targets for therapeutic development. Using this highly accurate, robotically
controlled process, scientists at Myriad have already identified 19 potential drug
targets for the Company and its pharmaceutical collaborators. In addition,
internal programs are analyzing over 110 novel protein pathways and have
succeeded in identifying pathways that
provide promising new approaches to the treatment of HIV and colon cancer.
Hitachi is the fifth major international company to initiate a ProNet(R) alliance to
discover drug targets within disease pathways. The Hitachi collaboration brings
the total potential value of ProNet(R) deals to over $170 million.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading
global electronics companies, with fiscal 1999 (ended March 31, 2000)
consolidated sales of 8,001 billion yen ($75.5 billion*). The company
manufactures and markets a wide range of products, including computers,
semiconductors, consumer products and power and industrial equipment. For
more information on Hitachi, Ltd., please visit Hitachi's Web site at
http://www.hitachi.co.jp.
* At an exchange rate of 106 yen to the dollar.
Myriad Genetics, Inc. is an emerging biopharmaceutical company focused on
the development of therapeutic and diagnostic products based on the application
of genomic and proteomic technologies. The Company has established two
wholly owned subsidiaries -- Myriad Pharmaceuticals, Inc., which develops and
intends to market therapeutic compounds, and Myriad Genetic Laboratories, Inc.,
which develops and markets proprietary molecular diagnostic services and has
introduced products in the fields of predictive and personalized medicine. The
Company has established strategic alliances with Bayer, Eli Lilly, Hitachi,
Monsanto, Novartis, Roche, Schering AG and Schering-Plough.
This and other recent releases are available on Myriad's Web site at
www.myriad.com .
ProNet is a registered trade mark of Myriad Genetics Inc. in the United States of
America.
The discussion in this news release includes forward-looking statements that are
subject to certain risks and uncertainties, including statements regarding Myriad
Genetic's Pronet technology. Such statements are based on management's
current expectations that are subject to risks and uncertainties that could cause
actual results to differ materially from those set forth or implied by forward-
looking statements, including, but not limited to, intense competition related to
the discovery of disease-related genes; uncertainties as to the extent of future
government regulation of the Company's business, uncertainties as to whether
the Company and its collaborators will be successful in developing, and
obtaining regulatory approval for, and commercial acceptance of, therapeutics
based on the discovery of disease-related genes and proteins; uncertainties as to
the Company's ability to develop therapeutic lead compounds, which is a new
business area for the Company; the risk that markets will not exist for
therapeutic lead compounds that the Company develops or if such markets exist,
that the Company will not be able to sell compounds, which it develops, at
acceptable prices.
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