Schering AG, and Combinature Biopharm AG, have signed a research agreement to apply Combinature's proprietary combinatorial biosynthesis technology to generate derivatives of one of Schering's lead compounds in the area of dermatology. Under the terms of agreement, Combinature will receive R&D payments and milestone payments. Schering will receive exclusive and worldwide rights to develop and commercialize generated products in the area of dermatology. Financial details were not disclosed.

"We view combinatorial biosynthesis as a novel tool to increase chemical diversity and to modify even highly complex compounds," said Prof. Rainer Metternich, head of Schering Research Center Europe. "Combinature's innovative approach to combine natural product research with genomic and biocatalysis tools will contribute to Schering's development pipeline. We look forward to working together with Combinature on this project with this unique technology."

"We are delighted to work together with Schering on this project and about their decision to take a close look at the advantages of our unique approach in combinatorial biosynthesis," said Dr Rolf Zettl, CEO of Combinature.

Combinature Biopharm AG is a drug discovery company, which applies a unique combinatorial biosynthesis technology. Combinature aims to become a leading provider of natural compound based pre-clinical and clinical development candidates for the drug development market. The 3i group, London, one of Europe's leading venture capital companies, finances Combinature.

Schering AG is a research-based pharmaceutical company. Its activities are focused on four business areas: gynaecology&andrology, diagnostics&radiopharmaceuticals, dermatology as well as specialized therapeutics for disabling diseases in the fields of the central nervous system, oncology and cardiovascular system.