Millennium, Aventis Sign Broad Anti- Inflammatory Agreement

Principals call it "...first of its kind" collaboration.

Millennium Pharmaceuticals Inc. (Cambridge, MA) and Aventis Pharma (Bridgewater, NJ) have signed an all-bases-covered agreement on anti-inflammatory drugs. The two companies agreed to:

• co-develop and commercialize anti-inflammatory drugs,
  
• work together on new drug discovery technologies, and
  
• transfer elements of Millennium's technology platform to Aventis to enhance its existing capabilities.

In addition, Aventis will purchase an equity interest in Millennium.

According to the two firms, this is the first biotechnology/pharmaceutical company alliance of its kind, which will result in Millennium and Aventis Pharma working collaboratively to identify drug targets and develop new anti-inflammatories and jointly commercialize the resulting products in North America. Target indications are rheumatoid arthritis, asthma and chronic obstructive pulmonary disease, multiple sclerosis, and inflammatory bowel disease.

Under the technology transfer agreement, Millennium will provide Aventis with rights to its drug discovery technologies in exchange for payments of up to $200 million over a five-year period. Under the investment agreement, Aventis will purchase $250 million worth of Millennium stock. A $150 million stock purchase will be made at closing and two $50 million purchases will be made in 2001. Taken together, the tech transfer and investment total up to $450 million in payments to and investments in Millennium by Aventis. Both agreements call for joint funding by the two companies.

"This relationship affords Aventis Pharma and Millennium scientists the opportunity to work side-by-side in the joint discovery of new technologies and new anti-inflammatory drugs," said Frank L. Douglas, executive vice president and head of Drug Innovation & Approval for Aventis Pharma. "In Millennium, we have a strong partner with world-class genomics capabilities and a successful track record in alliance relationships."

Frank Douglas heads Drug Innovation and Approval at Aventis Pharma.

Commented Mark Levin, CEO of Millennium, "For the first time, Millennium will be fully participating with one of our major pharmaceutical partners in the broad range of drug discovery, development, and commercialization. This provides us with the opportunity to share equally in both the decision-making and profitability of future products and strengthens the financial foundation for our own proprietary drug discovery and development efforts."

Joint research will be conducted at Aventis Pharma's Bridgewater, New Jersey site and at Millennium's Cambridge, Massachusetts facility. All decisions concerning which products advance on to further stages of development will be made jointly. Millennium and Aventis will share responsibility for and cost of developing, marketing and manufacturing products in North America. The companies will also share profits in North America. Outside of North America, Aventis will be responsible for developing and marketing products arising from the alliance, with a royalty obligation to Millennium. Product candidates that the companies choose not to develop jointly may be developed by either company, with a royalty obligation to the other.

While the alliance will focus on the discovery of small molecule drugs, Millennium will retain the rights to develop antibody drugs and predictive medicine products based upon discoveries made in the alliance, while Aventis will retain the rights to develop gene therapy and vaccine products.

For more information: Chip Rouse, Aventis Pharma, 399 Interpace Parkway, P.O. Box 663, Mailstation: PNJ5-M1514, Parsippany, NJ 07054. Tel: 973-394-6050. Fax: 973-394-7215.