HGS will retain a 13% equity interest in CoGenesys which has exclusive rights to develop and commercialize biological products based on certain human genes discovered by HGS. CoGenesys also has a license to use HGS' proprietary albumin-fusion technology to develop and commercialize certain albumin-fusion proteins.
The parent company is also entitled to a portion of the revenue that CoGenesys receives from out-licensing or sales of certain therapeutic and diagnostic products successfully developed and commercialized.
“Through this transaction, HGS will realize value from certain intellectual property assets and early-stage product opportunities that we do not plan to develop internally,” said H. Thomas Watkins, president and CEO, Human Genome Sciences. “HGS will benefit in future years from its right to share in CoGenesys revenues and from its equity interest.”