ROCKVILLE, Md.—Synthetic Biologics, Inc. has announced itssecond agreement with Intrexon Corporation. The companies have established aworldwide exclusive channel collaboration for the development andcommercialization of a series of monoclonal antibody therapies for thetreatment of infectious diseases that lack effective therapies. SyntheticBiologics will use Intrexon's suite of proprietary technologies, including themAbLogix platform for the rapid discovery of fully human monoclonal antibodies.The company will target three infectious diseases initially, with the option toexpand the collaboration to include up to an additional five indications.Synthetic Biologics will disclose the chosen indications when appropriate.
"We are very pleased to expand our relationship withSynthetic Biologics. Intrexon is committed to building a molecular toolkit andthe scientific expertise needed to take on the challenges of developing newtreatments for unmet medical needs," Saiid Zarrabian, president of Intrexon's ProteinProduction Division, said in a press release. "Intrexon's collaboration withSynthetic Biologics represents the culmination of important acquired andinternally developed technologies. Intrexon's core technology, the UltraVectorplatform for design, construction and testing of genetic components, integratedwith the mAbLogix platform for in-vitroBcell library production and the LEAP cell processing station, will allow forthe rapid end-to-end development from fully human antibody discovery to therapeutic."
Per the terms of the agreement, Synthetic Biologics will,within the specified indications, have broad access to Intrexon's suite ofproprietary technologies. In return, the company will issue Intrexon roughly3.6 million shares of Synthetic Biologics common stock as a technology accessfee. As a result, when combined with previously issued shares, Intrexon willown approximately 18 percent of Synthetic Biologics. In addition, SyntheticBiologics will also pay Intrexon an additional fee in either cash or stockshares, if it chooses to expand the collaboration beyond the primary threeindications.
"Through this second worldwide exclusive collaboration,we are pleased to strengthen our relationship with Intrexon and develop newtherapeutics for unmet medical needs, in an effort to build value for ourshareholders," Jeffrey Riley, CEO of Synthetic Biologics, said in a pressrelease. "Intrexon has state-of-the-art technologies and efficient processesthat have tremendous potential for the production of a broad spectrum of fullyhuman antibodies. This expanded relationship gives us access to thisparadigm-changing platform."
If certain filing and regulatory milestones are met,Intrexon will receive a milestone fee payable in cash or additional stock shares,and subject to certain expense allocations, Synthetic Biologics will also payIntrexon royalties on a quarterly basis based on annualized worldwide netsales. If approval of the issuance of the securities by NYSE Amex is notreceived within 120 days of the execution of Synthetic Biologics' andIntrexon's agreement, Intrexon has the right to terminate the companies'collaboration.
"We look forward to applying Intrexon's competencies tothe development of a series of monoclonal antibodies for the treatment ofinfectious diseases that take a tremendous worldwide toll on human life, and todisclosing more about our discovery targets in the near future," Rileyadded in a press release.
SOURCE: Synthetic Biologics press release