CuraGen Corporation and TopoTarget A/S announced a license and collaboration agreement to develop and commercialize PXD101, a novel histone deacetylase (HDAC) inhibitor for the treatment of solid and hematological cancers.

PXD101 is currently in a phase I clinical trial in patients with advanced solid tumours. HDAC inhibitors are a new class of potential anti- cancer agents that have shown promise in preclinical and clinical studies.

Under the terms of the agreement, CuraGen is acquiring exclusive rights to develop, and commercialize PXD101 in North America, Asia and all other markets excluding Europe. TopoTarget will retain commercialization rights in Europe. TopoTarget is expected to receive a $5 million equity investment and a $5 million in license fees.

TopoTarget is expected to receive royalties from CuraGen based on sales of PXD101 outside of Europe, and CuraGen is expected to receive reciprocal royalties from TopoTarget based on sales of PXD101 in Europe. CuraGen will fund the global development of PXD101. In addition, CuraGen has an option to select additional HDAC compounds from TopoTarget for clinical development in oncology and other indications for a take-up fee.

TopoTarget has the option to fund a portion of the global development of PXD101 and additional products in exchange for higher royalties. Potential payments to TopoTarget from CuraGen based on the successful development and commercialization of PXD101 and 2 additional HDAC inhibitor products could exceed $100 million.

As a result of CuraGen's collaboration with TopoTarget, CuraGen expects to increase its 2004 operating cash burn by $8 to $12 million from its previously provided guidance.

"We are pleased to be working together with TopoTarget, a leader in the HDAC field. PXD101 strengthens CuraGen's oncology portfolio with a promising phase I small molecule candidate," stated Jonathan M. Rothberg, CEO, president and chairman of CuraGen. "In addition to the clinical progress we hope to achieve with PXD101, we also expect that by the end of the year we will have CG53135 in phase II for cancer supportive care, have CR002 in phase I for kidney inflammation, and have announced additional internal programs for clinical development in 2005 and beyond."

"We believe that this collaboration provides a global strategy to rapidly bring our HDAC inhibitors to market for oncology, inflammatory diseases, and other related indications," stated Peter Buhl Jensen, CEO of TopoTarget.

PXD101 is a phase I HDAC inhibitor being investigated for the treatment of various solid and hematologic cancers. PXD101 has the potential to treat a wide range of solid and hematologic malignancies either as a monotherapy, or in combination with other active anti-cancer agents.

HDAC inhibitors represent a new mechanistic class of anti- cancer therapeutics that target HDAC enzymes, and have been shown to arrest growth of cancer cells (including drug resistant subtypes).

TopoTarget is a British/Danish biopharmaceutical company, which develops therapeutics for the cancer patient. CuraGen Corporation is a genomics-based pharmaceutical company, which improves the lives of patients by developing a pipeline of novel protein, antibody, and small molecule therapeutics in the areas of oncology, inflammation, obesity and diabetes, and central nervous system disorders.