DeveloGen and Andromeda, a newly formed wholly-owned subsidiary of Clal Biotechnology Industries, Sign Term Sheet for Asset Purchase Agreement for the DiaPep277® Program

4/17/2007, 11:30 AM (Source: GlobeNewswire)



Under the terms of the agreement, which is subject to certain closing
conditions, DeveloGen will transfer the rights in DiaPep277 to
Andromeda. DeveloGen will receive royalties upon commercialisation of
DiaPep277 products and Andromeda will have further monetary
obligations towards DeveloGen upon the successful completion of key
developmental and regulatory milestones prior to commercialisation.
It is intended that Andromeda will continue the ongoing phase III
study for DiaPep277. The final agreement is expected to be announced
within the next 60 days.

"We are very pleased to have Clal as our partner for DiaPep277. Clal
has a great track record of backing companies with innovative
approaches for the treatment of important diseases," said Carsten
Dehning, Chief Financial Officer of DeveloGen. "This partnership is
an important step in the ongoing strategic review and refocusing of
DeveloGen".

Ruben Krupik, Chief Executive Officer of Clal said: "Type 1 diabetes
is a very significant disease that is estimated to affect as many as
3 million people in the US alone. We believe DiaPep277 offers a novel
and highly innovative approach to treating this disease which has a
major impact on patients' lives and many long-term complications."

For further information please contact:

DeveloGen AG Clal Biotechnology
Industries Ltd.
Kathrin Shem-Tov Ofer Gonen
Manager Corporate Affairs Vice President
Marie-Curie-Str. 7 3 Azrieli Center,
37079 Goettingen, Germany 45th Floor
Phone: +49 551 50558 525 Tel-Aviv 69411,
Email: info@develogen.com Israel
Phone: +972 3 612
1616
Email:
office@arte.co.il


About DiaPep277 and Type 1 Diabetes
DiaPep277, is a synthetic peptide immunomodulator, which is being
developed exclusively by DeveloGen for the treatment of type 1
diabetes. The product is currently in phase III clinical development
in a global study being carried out in Europe, South Africa and
Israel. In patients with type 1 diabetes the immune system destroys
the insulin-producing beta-cells of the pancreas, resulting in
diminished and eventually non-existent insulin production and a
life-long dependence on exogenous insulin therapy. To date there is
no safe and effective way of stopping the immune destruction and
curing the disease.


DeveloGen
DeveloGen AG is a biopharmaceutical company engaged in the discovery
and development of novel therapeutics for the treatment of metabolic
disorders. The Company's most advanced drug candidate DiaPep277® is
currently in phase III clinical trial and targets type 1 diabetes in
adult and juvenile patients. In addition, DeveloGen has a deep and
highly complementary discovery pipeline including novel small
molecule insulin sensitizers (type 2 diabetes) and growth factors for
beta-cell regeneration (type 1 and type 2 diabetes). DeveloGen is
headquartered in Goettingen, Germany with operations in Rehovot,
Israel. For more information on DeveloGen, please visit
www.develogen.com.


Clal Biotechnology Industries
Clal Biotechnology Industries Ltd. (www.cbi.co.il) ("CBI") is an 81%
owned subsidiary of Clal Industries and Investments Ltd., the
remaining 19% is owned by Teva Pharmaceutical Industries. Founded in
1993, CBI is the leading Israeli investor in the area of life science
and is focused on identifying and building biotechnology companies
with proprietary biopharmaceutical solutions for unmet clinical
needs, a clinical proof of concept and large potential markets.
Portfolio companies include: D-Pharm, Mediwound, CureTech, Compugen
(Nasdaq:CGEN), NST, Polyheal, Immuno-Designed Molecules (France), and
Biokine Therapeutics.


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