Date: Nov 13, 1998 Source: PR Newswire (
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SAN DIEGO, Nov. 13 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA) today announced that it has entered into an agreement to acquire NaviCyte Inc., a private company that specializes in drug selection through its in-vitro screening capability and PK-Informatics tools. NaviCyte will operate as a wholly-owned subsidiary of Trega and is expected to relocate its operations from Sparks, Nevada, to Trega's facility in San Diego. Under the terms of the agreement, NaviCyte will receive 2.5 million shares of Trega common stock, plus approximately $350,000 in cash. The transaction is expected to close before the end of the year.
NaviCyte's technologies range from cell-based, high throughput screening tools to computational pharmacokinetic modeling and simulation tools designed to provide intelligence, traditionally available only for late stage drug development, to early stage drug discovery for NaviCyte's pharmaceutical partners. These technologies are designed to save money and time, and allow scientists to make more informed and ultimately successful decisions in selecting a drug for development.
"The acquisition of NaviCyte is a key strategic move for Trega and substantially strengthens our discovery and early-stage development platform," said Lawrence D. Muschek, president of research and development. "NaviCyte's technologies provide us with opportunities to accelerate drug discovery by solving a critical bottleneck in the drug pipeline, i.e., pharmacokinetic profiling in early-stage screening and selection. "In addition, NaviCyte's licenses and technologies will potentially generate significant revenues which would contribute to Trega's near-term goal of achieving cash self-sufficiency," said Robert S. Whitehead, Trega's chairman.
"We are excited about the complementary platform and scientific opportunities that exist between our companies. The combination of Trega's drug discovery expertise and NaviCyte's selection technology will be unique in the industry," said George M. Grass, NaviCyte's president. "In the months ahead we will work closely with Trega to insure a smooth transition and contribute significantly to shareholder value in the coming years."
NaviCyte, Inc. (www.navicyte.com) is a privately held biotechnology company based in Sparks, Nevada. The company offers proprietary High Throughput Pharmacokinetic Screening (HTPkS(TM)) systems, Pk-Informatics(TM) software tools, and consulting expertise to its partners and customers to facilitate the rapid screening of drug candidates for pharmacokinetic characteristics. These tools can improve the quality of the drug selection process prior to the commitment for expensive downstream animal and human studies.
Trega Biosciences is a drug discovery company, utilizing combinatorial chemistry and other technologies to pursue the discovery of novel, small- molecule drug therapies. The company leverages its technology platform by entering into pharmaceutical alliances, which provide partners with access to Trega's technologies in exchange for licensing fees and potential milestones and royalties, or by establishing joint-discovery alliances with pharmaceutical and biotechnology companies. Trega also uses its drugdiscovery technologies in its internal development programs, which are currently focused on discovering small molecules acting on melanocortin receptors. Melanocortins are a class of receptors which may be important in the treatment of inflammatory and metabolic diseases.
Except for the historical information contained herein, the matters discussed in the news release are forward-looking statements that involve risks and uncertainties, including whether the proposed acquisition will be consummated, whether NaviCyte can be successfully integrated into Trega's organization, whether NaviCyte's technology can be successfully developed or utilized and any proposed product can be successfully discovered, developed and commercialized, whether regulatory approvals can be obtained, the impact of competitive products and pricing, whether any corporate collaborations will be successful, and other risks detailed from time to time in Trega's Securities and Exchange Commission (SEC) filings. These forward-looking statements represent Trega's judgment as of the date of this release. Actual results may differ materially from those projected. Trega disclaims, however, any intent or obligation to update these forward-looking statements.
Trega's releases are on the World Wide Web at http://www.trega.com and PRNewswire's fax-on-demand service at 1-800-758-5804, extension 374050.
SOURCE Trega Biosciences, Inc.
