Viagene

May 16, 2016

Document details  |  Add to bookbag Page  [unnumbered] 1U/DZ/95 13:56:4?OCT. 2, 1995 Page 882(BW)(CHIRON)(CHIR) Chiron completes acquisition of Viagene toexpand its activities in gene therapyBusiness Editors/Medical WritersEMERYVILLE, Calif.--(BUSINESS WIRE)--Oct. 2, 1995--Chiron Corp.(NASDAQ:CHIR) announced today that it has completed the acquisitionof Viagene Inc., of San Diego, to expand its research, developmentand manufacturing capabilities in gene therapy.Chiron's gene therapy research programs and manufacturing willbe centered in San Diego under the name Chiron Viagene, which willbe a part of the Chiron Technologies business unit.To focus resources on research and development, Chiron alsoannounced a reduction of approximately 20 percent of theapproximately 160 positions at Chiron Viagene, primarily in general andadministrative functions, but including employees in other areas.To complete the acquisition, Chiron issued approximately 915,000 newshares of common stock, and paid approximately $36 million in cash,to acquire all outstanding shares of Viagene which it did notpreviously own. Chiron will expense in its third quarter endedSept. 30, 1995, a substantial portion of the approximately $130million of proceeds paid upon closing as the write-off of in-processtechnology.Based on preliminary results and terms of the merger agreement,Viagene shareholders who elected to receive all stock or who made noelection will receive stock for approximately 61 percent of theirholdings and cash for the remainder.Chiron's combined gene therapy research and development effortswill focus on indications in infectious disease, cancer, vaccines,cardiovascular disease and thrombosis, and may include additionalindications currently under consideration. Chiron Viagenecollaborations are expected to continue with Green Cross of Japan inHIV infection, and with Bayer AG of Germany in Factor VIII. StevenJ. Mento, Ph.D., formerly vice president of research and developmentat Viagene, will head the Chiron Viagene effort as president ofChiron Viagene and vice president of Chiron Technologies. "Gene therapy is an important enabling technology that ifsuccessful will yield innovative therapeutic products across a broadspectrum of disease indications," said Lewis T. Williams, M.D.,Ph.D., president of Chiron Technologies. "We foresee that genetherapy strategies will generate products that may replace currenttherapies, address unmet medical needs or which, when combined withexisting therapeutics or vaccines, improve both efficacy andsafety. ""The combination of Chiron and Viagene consolidates our genetherapy program, enhances our proprietary position in the field,provides opportunities to leverage capabilities and economizeefforts by focusing resources on research and clinical trials, andcreates a magnet for attracting therapeutic products for deliverythrough our systems," Williams continued. "We will continue theprograms with Green Cross and Bayer and will aggressively seekadditional partners to participate in the development andcommercialization of gene therapy technology. The combination ofChiron Viagene integrated with collaborations with Progenitor and111111 I 11111111 1111 111111111 ii5571095.0511.039