Avecia Acquires Hybridon's DNA Manufacturing Business

Hybridon (Milford, MA) and Avecia (Manchester, England) have agreed to terms for Avecia's acquisition of Hybridon's DNA manufacturing business and related intellectual property for $15 million. Avecia and Hybridon have also agreed that Avecia will supply GMP DNA for Hybridon through 2002. In addition, Avecia will receive intellectual property for large-scale manufacturing, patents covering novel reagents, processes and instrumentation for the cost effective manufacture of synthetic DNA. The deal, which requires Hybridon shareholder approval, is expected to be completed by the end of Q3, 2000.

The funds from the divestiture will substantially expand Hybridon's ability to focus on building its broad platform of DNA-based technology for medical applications, including antisense drugs, immune stimulatory CpG motifs and functional genomics. At the same time, Avecia strengthens its position as a leading manufacturer of DNA-based medicines, peptide pharmaceuticals, and biologics.

"The sale of our GMP DNA manufacturing capability allows us to rededicate ourselves to our primary mission of discovering and developing the many opportunities of our DNA technology platform," said James B. Wyngaarden, chairman of Hybridon. "Our supply agreement with Avecia secures access to the high-quality materials we need to advance our drug development program."

Hybridon will continue developing its antisense technology platform, in particular its Phase II oncology antisense drug candidate, GEM(R)231 for the treatment of solid tumors. Hybridon will also expand efforts in the application of novel immunostimulatory DNA molecules containing the CpG motif. The company has built a significant portfolio of analogues to these important molecules believed to significantly enhance the immune system.

Hybridon's DNA business is the second US-based DNA medicines manufacturing business to be acquired by Avecia. In August 1999 the company acquired Bedford, MA-based Boston BioSystems for $6 million. Most recently, Avecia announced the acquisition of Torcan Chemical Ltd., a Canadian pharmaceutical development and manufacturing business, for $40 million.

This deal doesn't mean that Hybridon is getting out of the pharmaceutical business. Rather the company will focus on its core competancies of discovery and development, especially for antisense drugs.

About the Companies
Avecia was founded in June 1999, as a result of a $2.1 billion buyout of the former Zeneca Specialties business from AstraZeneca. With 1999 sales of $1.2 billion and operating profit of $160 million, Avecia is one of Europe's leading specialty chemicals companies. It operates in five business segments: Fine Chemicals, Electronic Materials, Specialty Products, NeoResins and Stahl.

DNA Medicines is part of Avecia's LifeScience Molecules business which also includes Peptides, Biologics, pharmaceutical products and agrochemical intermediates. Production investments to support these businesses have exceeded $30 million per year.

Hybridon, Inc. discovers and develops DNA-based drugs. Hybridon has developed a broad-based platform of DNA chemistries with applications in many areas, including antisense therapeutics and immunostimulatory DNA sequences.

Hybridon has spun off two companies: MethylGene, Inc. and OriGenix Technologies Inc., in which it holds minority ownership positions. MethylGene's lead compound, MG 98, is currently in Phase I clinical trials for the treatment of solid tumors.

For more information: Maggie Flanagan, sr. director of Business Development, Hybridon, Inc. Tel: 508-482-7500, ext. 7514. Michael McLean, Business Manager, Avecia DNA Medicines. Tel: +44-1606-813440.

Edited by Angelo DePalma