ChondroGene Limited has received a CDN$1.58 million payment from Pfizer Inc in conjunction with achieving the first research milestone in the joint Pfizer/ChondroGene target identification program for osteoarthritis (OA). This payment is in addition to the initial equity investment, and the regular quarterly payments being made by Pfizer to support and accelerate ChondroGene's OA Biomarker Program. ChondroGene entered into this research collaboration with Pfizer Inc to identify novel therapeutic targets and biomarkers for OA in October of 2002. ChondroGene will receive up to CDN$7.5 million over the two year term of the agreement, exclusive of target validation milestone payments and royalties.
"Entering into the agreement with Pfizer in October was a significant event for ChondroGene. The collaboration with Pfizer is an important external validation of our approach and science and this payment further substantiates that we can deliver," stated Dr. K. Wayne Marshall, President and CEO of ChondroGene. "OA places a huge burden on society, both in terms of cost and in loss of quality of life. Thus, there is a critical need for new biomarkers and therapeutic targets that can result in timely diagnosis and effective management of OA. We are very pleased that Pfizer chose ChondroGene as one of its partners in this important disease area."