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Incyte Announces Agreement to Acquire Maxia Pharmaceuticals
Business Wire - November 12, 2002 08:09
PALO ALTO, Calif. & SAN DIEGO--(BUSINESS WIRE)--Nov. 12, 2002--Incyte Genomics, Inc. (Nasdaq:INCY) announced today that it has agreed to acquire Maxia Pharmaceuticals, Inc., a privately-held small molecule drug discovery company based in San Diego, California, for up to $28.3 million in cash and stock and up to $14 million in future clinical performance milestone payments. Maxia, which currently has 28 employees, is developing compounds to treat chronic and life-threatening conditions such as diabetes, hyperlipidemia, inflammation and cancer.

The agreement was approved by the boards of directors of both companies and is expected to close after the companies receive clearance from California regulatory authorities and the approval of Maxia's shareholders. Upon closing, Maxia will become a wholly-owned subsidiary of Incyte.

Paul Friedman, M.D., Incyte's chief executive officer, stated: "Maxia brings to Incyte a number of very exciting research and development programs which complement our discovery activities in cancer and inflammation. By combining our two companies we will create a more advanced and robust pipeline of discovery projects and product candidates and accelerate our efforts to build a successful drug discovery and development organization. We look forward to welcoming the Maxia team to Incyte."

Robert Stein, M.D., Ph.D., president and chief scientific officer of Incyte, stated: "Maxia has made significant progress in the discovery of small molecule inhibitors of protein phosphatases which may have utility in treating cancer and other diseases. Maxia has made important advances in this difficult field and discovered phosphatase inhibitors that are orally active in animal models. Maxia also has a very productive partnership with Johnson & Johnson to develop novel treatments for Type 2 diabetes that are advancing toward human clinical trials. We are impressed with the quality of Maxia's scientific team and the progress it has made in several promising areas of drug discovery."

Magnus Pfahl, Ph.D., chairman and chief executive officer of Maxia, stated: "Over the last few years, Maxia has developed a promising small molecule technology platform for various disease areas. Maxia's new classes of small molecules can interact with a variety of drug targets including nuclear receptors, phosphatases and kinases. Our successful collaboration with Johnson & Johnson is focused on new treatments for Type 2 diabetes and metabolic disorders. Maxia has been looking for an optimal partner for our other existing programs, especially our phosphatase inhibitors for cancer and metabolic diseases. We believe we have found that partner in Incyte, which has the resources and expertise to allow the rapid advance of promising lead molecules into the clinic. We at Maxia look forward to becoming productive contributors to Incyte's growing drug discovery and development efforts."

Incyte's senior management will be available to answer questions about the proposed acquisition of Maxia during its third quarter conference call today, November 12, 2002 at 2:00 p.m. PST. The domestic dial in number for the conference call will be 800-473-6123 and the international dial in number will be 973-582-2710.
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