AGTC Receives $2 Million Milestone from Genzyme after Successful Transfer of Novel Production Technology

ALACHUA, Fla.--(BUSINESS WIRE)--AGTC (Applied Genetic Technologies Corporation), a privately held clinical stage gene therapy company, is pleased to announce that it has received a $2 million milestone payment from Genzyme Corporation as a result of having successfully transferred AGTC’s proprietary Adeno-Associated Virus (AAV) vector production technology to Genzyme.

AGTC and Genzyme are jointly developing a gene therapy product for the treatment of neovascular age-related macular degeneration. Through the collaboration, Genzyme has access to AGTC’s vector production expertise along with rights to certain intellectual property for the use of AAV vectors to deliver genes to patients. These rights include access to AGTC’s novel, high-yield, manufacturing technology for AAV vectors.

Upon successful completion of each phase of technology transfer of the production technology, Genzyme will make an associated milestone payment to AGTC. This payment is in recognition of the successful completion of the first phase under the agreement.

Sue Washer, President and CEO of AGTC said: “We are delighted with the overall progress of the collaboration and the successful completion of this milestone demonstrates that AGTC’s AAV vector production platform is proving to be as robust and as powerful as expected, and we look forward to the successful achievement of additional milestones. Using our protocols, Genzyme has produced AAV vector at quantities and levels of purity within the range consistently achieved in our facilities. The positive working relationship between Genzyme and AGTC allowed the efficient transfer of this technology.”

About AGTC: AGTC is focused on the research and development of novel therapeutics for patients with unmet medical needs utilizing the non-pathogenic adeno-associated virus. AGTC’s first product candidate is a treatment for Alpha One Antitrypsin Deficiency, an inherited form of emphysema; Phase I trials are underway with a potential product launch in 2010. AGTC’s investors include Interwest Partners (Menlo Park, CA), Intersouth Partners (Durham, NC), MedImmune Ventures (Gaithersburg, MD), and Skyline Ventures (Palo Alto, CA). The Company is located near Gainesville, Florida.

Genzyme Corporation and AGTC entered into a research partnership in late-2004 to develop novel therapeutics involving gene therapy. The lead collaborative program calls for the parties to develop, manufacture and market a gene therapy product to treat Wet Age-Related Macular Degeneration. The collaboration builds on AGTC’s expertise in Adeno-Associated Virus which includes manufacturing and administering vectors used to deliver genes to patients, and Genzyme’s 15-year experience advancing gene therapy clinical trials across a range of conditions, including cardiovascular disease, oncology, cystic fibrosis, and Parkinson’s disease.

About Genzyme: One of the world's leading biotechnology companies, Genzyme is dedicated to making a major positive impact on the lives of people with serious diseases. Since 1981, the company has grown from a small start-up to a diversified enterprise with more than 9,000 employees in locations spanning the globe and with 2006 revenues of $3.2 billion. Genzyme has been selected by FORTUNE as one of the “100 Best Companies to Work for” in the United States.

With many established products and services helping patients in nearly 90 countries, Genzyme is a leader in the effort to develop and apply the most advanced technologies in the life sciences. The company's products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant, and diagnostic testing. Genzyme's commitment to innovation continues today with a substantial development program focused on these fields, as well as immune disease, infectious disease, and other areas of unmet medical need.