Senesco and Rahan Meristem (1998) LTD Enter Into New Agreement
January 05 2012 - 8:30AM
Business Wire
Senesco Technologies, Inc. (“Senesco” or the “Company”)
(NYSE AMEX: SNT) announced today that it has re-structured its
research and development agreement with Rahan Meristem (1998) Ltd
(“Rahan”) to reflect the priorities of both Companies.
“I am very pleased with the scientific progress we have made in
the collaboration and the results that have been obtained in field
trials for shelf life of banana fruit and disease resistance to a
fungal disease that is ravaging banana plants world-wide,” said
John E. Thompson, Ph.D., Founder and Chief Scientific Officer. “We
look forward to seeing our joint efforts continue to fruition.”
The new agreement is an amendment to the original research and
development agreement, dated May 1999, that provided Rahan access
to Senesco’s proprietary technology enabling the two Companies to
engage in a jointly-funded research and development program
relating to the development and production of banana plants with
improved traits. The new agreement re-structures the collaboration
from a cost and profit sharing arrangement to a license agreement,
which provides Senesco with a mid- to upper-single digit royalty on
incremental revenue as defined in the agreement, from the sale of
Rahan’s banana seedling products containing Senesco’s technology
without any future payments by Senesco for the costs of development
and commercialization. If a product, which incorporates Senesco
technology, is commercialized by Rahan, the royalties will be
payable from first commercial sale for the longer of ten (10) years
or the expiration of the last valid patent on a country-by-country
basis.
“Our collaboration with Rahan, which is our longest, has
resulted in excellent progress towards its goals and reflects the
importance of agricultural applications of eIF5A,” said Leslie J.
Browne, Ph.D., President and CEO of Senesco. “Moving forward we
needed to re-structure our agreement in order to optimize the
return on investment for our shareholders. The new agreement allows
Senesco to benefit from applications of our technology in the Rahan
field without losing our current focus on the human therapeutic
applications of eIF5A.”
About Senesco Technologies, Inc.
Senesco, a leader in eIF5A technology, is running a clinical
study in multiple myeloma with its lead therapeutic candidate
SNS01-T, which targets B-cell cancers by selectively inducing
apoptosis by modulating eukaryotic, translation, initiation Factor
5A (eIF5A), which is believed to be an important regulator of cell
growth and cell death. Accelerating apoptosis may have applications
in treating cancer, while delaying apoptosis may have applications
in treating certain inflammatory and ischemic diseases. Senesco has
already partnered with leading-edge companies engaged in
agricultural biotechnology and is entitled to earn research and
development milestones and royalties if its gene-regulating
platform technology is incorporated into its partners’
products.
About Multiple Myeloma
Multiple myeloma is an incurable cancer of plasma cells, a type
of white blood cell derived from B-lymphocytes, normally
responsible for the production of antibodies. Senesco was
previously granted orphan drug status for SNS01-T, the Company’s
lead drug candidate for treatment of multiple myeloma.
Forward-Looking Statements
Certain statements included in this press release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results could
differ materially from such statements expressed or implied herein
as a result of a variety of factors, including, but not limited to:
the ability of the Company to consummate additional financings; the
development of the Company’s gene technology; the approval of the
Company’s patent applications; the successful implementation of the
Company’s research and development programs and collaborations; the
success of the Company's license agreements; the acceptance by the
market of the Company’s products; the timing and success of the
Company’s preliminary studies, preclinical research and clinical
trials; competition and the timing of projects and trends in future
operating performance, the Company’s ability to comply with the
continued listing standards of the NYSE Amex, as well as other
factors expressed from time to time in the Company’s periodic
filings with the Securities and Exchange Commission (the "SEC"). As
a result, this press release should be read in conjunction with the
Company’s periodic filings with the SEC. The forward-looking
statements contained herein are made only as of the date of this
press release, and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
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