Maxygen, Astellas seal research pact, CEO will exit
Maxygen Inc (MAXY.O),
has agreed to set up a joint venture with Japan's Astellas
Pharma Inc (4503.T) to focus on researching protein
pharmaceuticals, as the U.S. drug maker brings in a partner to
defray the cost of its research programs.
Maxygen said on Tuesday its chief executive, chief
financial officer and chief operating officer will depart the
company after the venture is set up and established. Maxygen
will own 83 percent of the venture initially, in a structure to
be finalized in the third or fourth quarter of this year.
The partners will contribute $10 million in cash each to
the newly formed venture, which will likely be led by Maxygen's
chief business officer, Grant Yonehiro, Maxygen said in a
statement.
Maxygen, which has reported persistent losses over past
years, said in October it would lay off 30 percent of its
workforce and delay certain programs as it searches for
partners to share costs.
Under the terms of the venture agreement, Astellas will
have the option to buy out Maxygen's stake within three years
after the venture is set up.
If Astellas does not buy Maxygen's stake during the
three-year window, it may choose to license one product from
the venture. The remaining products will be jointly owned by
both companies.
"Today's announcement largely completes a multiyear
strategic process to position Maxygen's programs and assets in
collaborations and other arrangements that are primarily
supported by external parties," the executive chairman of the
board, Isaac Stein, said in a statement on Tuesday.
"As a part of this process and following an appropriate
transition period after the closing of the joint venture
transaction, we also expect Maxygen's current senior management
team -- Russell Howard, Larry Briscoe and Elliot Goldstein --
will be leaving the company."
The company plans to shift one of its major research
programs, focusing on the treatment of autoimmune diseases such
as rheumatoid arthritis and transplant rejection, to the joint
venture, Maxygen said.
Shares in the Redwood City, California-based company closed
down 4.4 percent at $6.72 on the Nasdaq.
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