SurroMed and PPD sign strategic collaboration
PPD Will Increase Investment in SurroMed and Commit to Biomarker Discovery Effort
SurroMed, Inc. today announced it has entered into a strategic collaboration with PPD, Inc. that involves a cash investment and a sale of assets, including a range of cancer biomarkers, by PPD to SurroMed in return for a total of $24 million of a new series of SurroMed senior preferred stock. In addition, PPD has agreed to purchase biomarker discovery services from SurroMed over a four-year period and to act as SurroMed's non-exclusive representative for sales of additional biomarker discovery services. In connection with the transaction, SurroMed intends to relocate to PPD's facility in Menlo Park, California. The transactions are expected to close in August 2003.
"This collaboration is a strong affirmation of the value of, and the need for, improved biomarkers for the discovery and development of therapeutic and diagnostic products," said Gordon Ringold, Ph.D., CEO and chairman of SurroMed. "We are delighted to expand our existing relationship with PPD, a worldwide leader in drug development. We believe that the collaboration with PPD will allow SurroMed to achieve positive cash flow and sustainability and to expand our leadership position in the field of biomarker discovery. We intend to use the cancer biomarkers we have acquired from PPD to begin a focused effort in cancer diagnostics and will seek to partner related cancer therapeutic opportunities."
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