Human Genome Sciences Inc announced a license agreement with Genentech Inc under which Genentech has acquired exclusive, worldwide patent rights to develop and commercialize therapeutic biologic products for human use based on a human gene discovered by Human Genome Sciences that may have potential applications in immunology, oncology and neurology. Under the agreement, Genentech also has acquired non-exclusive, worldwide rights for the development and commercialization of diagnostic and small molecule products for human use based on the same gene.

According to the terms of the agreement, Human Genome Sciences will receive an upfront payment and annual license maintenance fees. In addition, Human Genome Sciences is entitled to receive from Genentech clinical development milestone payments and royalties on annual net sales for therapeutic and diagnostic products successfully developed and commercialized.

William A. Haseltine, Chairman and CEO, Human Genome Sciences, said, "We are pleased to enter into this agreement with Genentech. We also are pleased that our work may facilitate the discovery of drugs that may be used to treat serious diseases. The agreement with Genentech demonstrates our continuing ability to provide access to our technology to companies that are seeking to develop gene-based therapeutic and diagnostic products."