Under the terms of the agreements, Pfizer will invest $25 million in Monogram through a 3% senior secured convertible note, payable in May 2010. The investment, which is subject to customary closing conditions, is expected to close in May 2006.
Separately, Pfizer and Monogram jointly announced the signing of a collaboration agreement to make Monogram’s Co-Receptor Tropism Assay globally available for patient use. The assay has been utilized in HIV/AIDS clinical trials for Pfizer’s investigational CCR5 inhibitor drug candidate, maraviroc.
The collaboration agreement is for the period through December 31, 2009 and is renewable by Pfizer for five successive one-year terms. Under the agreement, Monogram will take the lead in commercialization of the assay in the US and Pfizer will take the lead internationally.
“Pfizer’s $25 million investment is expected to provide significantly greater financial flexibility to Monogram,” said Alfred Merriweather, Monogram’s CFO. “This strengthening of our balance sheet gives us enhanced flexibility to address our business and financial opportunities and to facilitate Monogram’s continued growth and development.”