Drug Royalty Corporation Inc. Acquires Royalties from Nanogen Inc. for $20 Million

Oct 04, 2006, 01:00 ET from Drug Royalty Corporation Inc. from ,Nanogen Inc.

    TORONTO, and SAN DIEGO, Oct. 4 /PRNewswire/ -- Drug Royalty Corporation
 Inc. (DRC) and Nanogen Inc. (Nasdaq:   NGEN) announced today that they have
 entered into an agreement for a trust managed by DRC to acquire an interest
 in royalties on the MGB(TM) (minor groove binder) technology owned by
 Nanogen for 5' nuclease real-time PCR applications in the biomedical
 research market. Under terms of the agreement, between July 2006 and
 December 2011, DRC will be entitled to receive royalties up to a specified
 threshold, above which the parties will share royalties. DRC will make a
 one time payment of $20 million to Nanogen. Nanogen retains ownership of
 the MGB(TM) patents, as well as future royalties beyond 2011.
     "This transaction marks DRC's first acquisition of a royalty related to
 molecular biology research tools," said Paul Kirkconnell, Managing Director
 at Drug Royalty. "This agreement represents an expansion beyond DRC's
 traditional interest in therapeutics and is another example of the tailored
 and innovative sources of capital DRC offers."
     "Monetizing a portion of our royalty stream provides us with a
 non-dilutive means of raising capital to fund development of new products
 for the growing molecular diagnostic and personalized medicine market,"
 said Howard C. Birndorf, Nanogen chairman and chief executive officer.
     The royalty payments are related to Nanogen's patented MGB(TM)
 technology that has been licensed to Applied Biosystems (ABI) for use in
 ABI's TaqMan(R) products (TaqMan(R) is a registered trademark of Roche
 Molecular Systems, Inc.). Nanogen's MGB(TM) moiety provides many advantages
 in the design of oligonucleotides, such as allowing for the design of
 shorter probes with high sensitivity to mismatches, improving single
 nucleotide polymorphism detection, and allowing for multiplexing assays.
     About Drug Royalty Corporation Inc.
     Drug Royalty Corporation (DRC) is a privately held healthcare
 investment company that is a leading purchaser of royalties on
 commercialized drugs and drugs with near term commercial visibility. DRC
 also invests capital by acquiring revenue based cash flows from companies
 within the life-sciences industry and can augment royalty and revenue based
 investments with equity investments. A pioneer in the field when launched
 in 1992, DRC was the first firm to acquire royalties in the life sciences
 sector and the first to complete royalty transactions with inventors and
 institutions. Since then, DRC has built an impressive international royalty
 portfolio of blockbuster products including pharmaceutical and medical
 device technologies. Information about DRC can be found at
     About Nanogen, Inc.
     Nanogen's advanced technologies provide researchers, clinicians and
 physicians worldwide with improved methods and tools to predict, diagnose,
 and ultimately help treat disease. The company's products include real-time
 PCR reagents, the NanoChip(R) electronic microarray platform and a line of
 rapid, point-of-care diagnostic tests. Nanogen's ten years of pioneering
 research involving nanotechnology holds the promise of miniaturization and
 continues to be supported for its potential for diagnostic and biodefense
 applications. For additional information please visit Nanogen's website at

SOURCE Drug Royalty Corporation Inc.; Nanogen Inc.