Organon and Lexicon Genetics collaborate to develop biotherapeutic drugs

Arnhem, the Netherlands, May 17, 2005 – Organon, the human pharmaceutical business unit of Akzo Nobel, and US-based Lexicon Genetics, today announced that they are to collaborate in the development and commercialization of new biotherapeutic drugs.

Under the terms of agreement signed, the two companies will combine Organon’s expertise in clinical development, biologics manufacturing and commercialization with Lexicon target discovery and biotherapeutics capabilities to accelerate the development of novel therapeutic antibodies and secreted proteins. “This collaboration, in conjunction with the establishment of our new biotechnology research center in Cambridge, Massachusetts, reinforces the strong commitment at Organon to research and development and alliances to expand our biopharmaceutical franchise into other areas, including immunology,” stated David Nicholson, Executive Vice-President Global Research at Organon. “Lexicon’s leadership in novel target discovery complements our own biotechnology research and development capabilities and should provide both of our companies with a new generation of drugs.” The two companies will start by jointly selecting 300 genes that encode therapeutic proteins or antibody targets. The costs will be equally shared by both companies as will product revenues. Organon will have principal responsibility for the manufacture of biotherapeutic products resulting from the collaboration. Organon will pay Lexicon an upfront payment of USD 22.5 million for access to Lexicon’s drug target discovery capabilities and the exclusive right to co-develop biotherapeutic products that modulate the 300 genes selected for the collaboration, including the two existing drug discovery programs. Organon will also provide annual research funding totaling up to USD 50 million to Lexicon for Organon’s 50% share of the collaboration’s costs during the four-year target function discovery portion of the alliance. Commenting on the agreement between the two companies, Arthur T. Sands, President and CEO of Lexicon, said: “Our companies will gain a strategic advantage by combining Lexicon’s powerful target discovery engine with Organon’s drug development and commercialization experience and manufacturing capability to move rapidly from gene function discovery to marketed therapeutic products. We expect a robust pipeline of new antibody drugs and protein therapeutics to result from the combined efforts of our discovery and development teams.” - - -