Cell Genesys Forms New Firm, Abgenix

Abgenix, a new US antibody therapy company formed by Cell Genesys, will focus exclusively on developing and commercializing human monoclonal antibodies for pharmceutical applications, Cell Genesys has announced. The formation of Abgenix is accompanied by a new agreement between Cell Genesys and Japan Tobacco that will enable Abgenix to gain worldwide rights to selected antibody products.

"The establishment of a free-standing business based on our antibody program is a major step forward for Cell Genesys," commented Stephen Sherwin, chairman and chief executive of the company. "We have been operating with two distinct product development pipelines, gene therapy and antibody therapy. Both pipelines have multiple product candidates with significant commercial potential, and both have shown substantial progress in recent months. The strategic concentration of resources should enable us to maximize the value of our novel technologies," he added.

In establishing Abgenix, Cell Genesys will contribute $10 million in cash and provide the opportunity for additional funding in the form of a loan. Cell Genesys will also contribute research, development and manufacturing technology as well as patents and other intellectual property specific to the antibody therapy programs.