Genome Therapeutics has completed an agreement with Amgen Inc for the identification and development of novel therapeutic agents for bone diseases, including osteoporosis. Both companies will participate in collaborative research efforts to discover one or more drug candidates suitable for development. The companies may, as part of the research activities, use genetic information, developed by Genome Therapeutics based on research conducted at the Creighton University Osteoporosis Research Center, which has been exclusively licensed to Amgen.

As part of the agreement, Genome Therapeutics will receive from Amgen an upfront cash payment, sponsored research funding and, potentially, additional milestones and other downstream consideration depending on the success of the discovery, development and commercialization activities. The total potential additional payments are significant and within the range commonly found in the industry in agreements for research programs at this stage of development and consistent with previous Genome Therapeutics discovery agreements focused on chronic human diseases.

"The promise of the combined efforts of our two companies is supported by the prior successes Amgen has had at bringing innovative human therapeutics to market," said Steven M. Rauscher, CEO and President of Genome Therapeutics. "In addition, this is the first agreement of this type in which Genome Therapeutics participates in downstream discovery efforts and has other features which represent an important step for Genome Therapeutics in building an integrated biopharmaceutical company."

Osteoporosis is a disease characterized by low bone mass, structural deterioration of bone tissue and an increased susceptibility to fractures. If not treated, the disease advances and the hip and spine become increasingly vulnerable. According to the American Academy of Orthopaedic Surgeons, osteoporosis affects over 25 million people in the United States at a direct cost of $10 billion. It can result in 1.5 million fractures every year with one out of two women and one in five men at risk of developing an osteoporosis-related fracture in their lifetime.