Exact Sciences Corporation has formed a strategic relationship with Genzyme Corp pursuant to which Genzyme has acquired certain intellectual property assets related to the fields of prenatal and reproductive health as well as three million shares of Exact common stock.

Under the transaction, Exact retained exclusive worldwide rights to its colorectal cancer screening and stool-based DNA testing intellectual property, and will receive a share of Genzyme's sublicensing income derived from the purchased intellectual property outside the fields of prenatal and reproductive health.

Jeffrey R Luber, Exact's president and chief executive officer, said, "This strategic relationship with Genzyme is an important milestone in Exact's continued evolution and will serve as a solid platform for us to grow our oncology diagnostics business. Genzyme is one of the world's leading biotechnology companies and this transaction offers an ideal relationship for Exact. In addition to the substantial infusion of capital into Exact, we believe that our ability to access Genzyme's extensive development and regulatory expertise will facilitate our efforts toward the introduction of our next-generation platform for colorectal cancer screening."

"This transaction will bring Genzyme intellectual property in support of our development of non-invasive prenatal testing and other advanced diagnostic testing services," said Jon L Hart, senior vice president and general manager, Genzyme Genetics. "We have a responsibility to bring forward more advanced testing options for physicians and families and we are strongly committed to driving continued innovation in this field. We are pleased to be shareholders in Exact and believe that our relationship may facilitate their important mission to bring novel stool-based cancer diagnostics to the public."

As a result of the transaction provides Exact opportunity to receive $24.5 million in cash in total. At closing, Exact received $16.65 million, with an additional $1.85 million to be received over the next 18 months, contingent upon the non-occurrence of certain events, in exchange for the sale and license of certain of Exact's intellectual property assets, including those relating to reproductive and prenatal health.

Going forward, Exact plans to focus on the development of a Version 3 colorectal cancer screening test based on an improved DNA detection technology developed by Johns Hopkins University. Previously, Exact announced the published results from a proof of concept study using the BEAMing technology, an advanced form of digital PCR, in which stool and blood plasma were assessed in a head-to-head comparison for the detection of colorectal cancer (CRC).

In conjunction with the completion of this transaction, Jeffrey R Luber, Exact's president and chief executive officer, has announced his intention to work with the Board to find a new CEO with product and commercial development expertise directly aligned with Exact's next phase of growth. To that end, the Board has set up a search committee to initiate the search process for a new chief executive officer. Luber intends to remain President and CEO until the appointment of his replacement.

Patrick J Zenner, chairman of the Board of Directors of Exact, said, "We applaud Jeff for his many successes at Exact, including leading us through inclusion in the American Cancer Society screening guidelines and this very successful strategic relationship with Genzyme. Jeff has played a pivotal role, on so many levels, in putting in place a platform for Exact's future success, for which all of us on the Board are sincerely appreciative."

"It remains a privilege to be part of a public health story as important as Exact Sciences," commented Luber. "It is equally gratifying to work with such a dedicated and passionate team of board members and managers, all with the same goal in mind--decreasing mortality from colorectal cancer through the power of DNA. I look forward to working with the Board through this important period of transition."

One of the world's leading biotechnology companies, Genzyme is dedicated to making a major positive impact on the lives of people with serious diseases.