Targeted Genetics has sold certain assets, including manufacturing technologies and other adeno-associated viral (AAV) vector technology to Genzyme for $7m in cash.
The company said, purchased assets consist primarily of patents. Genzyme also received a license to use certain technology and materials necessary for manufacturing AAV vectors.
As per the agreement, Targeted Genetics has to work with Genzyme to transfer the acquired technology and assist Genzyme in its implementation of the technology. Genzyme has agreed to pay $3.5m within five days of the closing and an additional $3.5m in installments payable upon successful completion of specified transfer plan deliverables.
Targeted Genetics will receive revenue from Genzyme in the event that Genzyme sublicenses the acquired intellectual property within specified time periods, and will receive royalties in the event of commercial sales of products containing AAV vectors covered by the acquired intellectual property.
As part of the transaction, Genzyme has licensed back the AAV manufacturing and vector technology to Targeted Genetics for its use in specified product programs. Genzyme will receive royalties from Targeted Genetics in the event of any commercial sales of certain products.
Susan Robinson, president and CEO of Targeted Genetics, said: “We believe that the AAV vector manufacturing expertise developed by Targeted Genetics is in the hands of a company well-positioned to move it forward. Genzyme has demonstrated a commitment to advancing gene therapeutics and has AAV programs in its development pipeline. We have evaluated multiple opportunities to build shareholder value around these assets, and believe this transaction holds the most promise.”
Targeted Genetics expects the transition plan to be completed by the end of 2009.