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.