454 Life Sciences obtains license from Pyrosequencing AB to next generation sequencing technology for whole genome Applications
27-Aug-2003
Branford, CT and Uppsala, Sweden - 454 Life Sciences, an innovative developer of genome-scale sequencing technologies and a majority-owned subsidiary of CuraGen Corporation announced that the Company has obtained an exclusive license for sole use of sequencing by synthesis and pyrophosphate based sequencing for whole genome applications from Pyrosequencing AB, a global technology solutions provider for the Applied genomics market.
Under the terms of the agreement, the license gives 454 Life Sciences the exclusive right to use this technology in whole genome analysis, while Pyrosequencing AB will retain the rights to its pyrophosphate-based sequencing technology for all applications not related to whole genome activities. This license makes 454 Life Sciences the only company allowed to produce instruments and kits, and provide services that utilize sequencing by synthesis or pyrophosphate based sequencing for whole genome sequencing, such as karyotyping, genotyping and determining sequence-based Expression, in the United States, Canada, Europe, Japan, Australia and other countries around the world.
For the five years of exclusive license rights Pyrosequencing will receive a minimum of $4.5 million USD (approximately 36.5 MSEK) in up-front payments and minimum royalties. After year five, 454 Life Sciences has an option to maintain the exclusivity throughout the lifetime of the licensed patents at an additional cost of $0.5 - $1 million USD per year.
Established in 2000, 454 Life Sciences develops technologies and tools to sequence whole genomes using a massively parallel, scalable platform that compresses the time, cost, sample preparation, and space required to determine the nucleotide sequence of whole genomes. The Company's technology enables a single individual to not only prepare, but also sequence a genome after performing only one sample preparation, irrespective of the size of the genome being investigated.
"Gaining this exclusive license is strategic for us as we broaden our strong intellectual property base and expertise to ensure that 454 Life Sciences maintains its leading position and creates barriers to entry in the whole genome sequencing arena," stated Richard F. Begley, Ph.D., President and CEO of 454 Life Sciences. "As our technology is the first that was intentionally designed to sequence whole genomes, we are confident that having this license from a technology leader such as Pyrosequencing AB will ensure our first-mover advantage," added Dr. Begley.
"This agreement with 454 Life Sciences is an important milestone in the rapidly expanding utilization of our Pyrosequencingä technology. Renowned in the Life Science community for its accuracy and high quality data in the analysis of genetic variability and DNA sequences, Pyrosequencing is now being developed for the application area of whole genome sequencing," said Erik Walldén, CEO of Pyrosequencing. "We are enthusiastic about the unique strength offered by the combination of the accuracy and precision of Pyrosequencing and the massively parallel processing capability provided by 454 Life Sciences. We are particularly happy with this agreement since CuraGen Corporation was one of our very first customers for a PSQ(TM)96 System as early as 1999," added Mr. Walldén.
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