CHIR Chiron (MM)

Gen-Probe and Chiron Amend Blood Screening Collaboration Agreement to Set Fixed Revenue Shares SAN DIEGO, Nov. 12 /PRNewswire-FirstCall/ -- Gen-Probe Incorporated and Chiron Corporation today announced that they have agreed to amend their world-wide blood screening collaboration agreement in order to adopt permanent, fixed revenue shares for each party. Effective January 1, 2004, Gen-Probe's share will be set at 45.75% of net revenues for assays which include a test for HCV. For commercial assays which do not test for HCV, such as the prospective West Nile test, the agreement remains unchanged with each party retaining 50% of the net revenues after deduction of appropriate expenses. The amendment eliminates the prior variable revenue shares and eliminates Chiron's right to appoint a third party distributor in the United States. No other provisions of the collaboration agreement are affected by the amendment. Hank Nordhoff, Gen-Probe's chairman, president and CEO, commented, "The uncertainty associated with the ultimate worldwide revenue sharing percentage has been removed from our collaboration agreement with Chiron. The agreement we reached is a reasonable compromise to avoid any disruption to the existing business relationships that could occur if Chiron were to switch to a major distributor." "This agreement benefits both Chiron and Gen-Probe and allows the companies to move forward on expanding their commitment to blood safety," said Jack Goldstein, president of Chiron Blood Testing. "We look forward to our continuing collaboration with Gen-Probe as the companies introduce important new assays, including the Ultrio Assay for HIV-1, hepatitis C and hepatitis B." About Gen-Probe Incorporated Gen-Probe Incorporated, founded in 1983, is a global leader in the development, manufacture and marketing of rapid, accurate and cost-effective nucleic acid testing products used for the clinical diagnosis of human diseases and for screening donated human blood. Using its patented NAT technology, Gen-Probe has received FDA approvals or clearances for more than 60 products that detect a wide variety of infectious microorganisms, including those causing sexually transmitted diseases, tuberculosis, strep throat, pneumonia and fungal infections. Additionally, the Company developed and manufactures the only FDA-approved blood screening assay for the simultaneous detection of HIV-1 and HCV, which is marketed by Chiron Corporation. Gen-Probe and Bayer Corporation have formed a collaboration to develop, manufacture and market nucleic acid diagnostic tests for certain viral organisms, and under the agreement Bayer has the right to distribute these tests, including the recently approved VERSANT(R) HCV Qualitative Assay. Gen-Probe has 20 years of nucleic acid detection research and product development experience, and its products are used daily in clinical laboratories and blood collection centers throughout the world. Gen-Probe is headquartered in San Diego, California and has approximately 700 employees. Additional information about the Company can be found on the Internet at http://www.gen-probe.com/ . VERSANT is a trademark of Bayer Corporation. PROCLEIX is a trademark of Chiron Corporation. Any statements in this press release about our expectations, beliefs, plans, objectives, assumptions or future events or performance, are not historical facts and are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "believe," "will," "expect," "anticipate," "estimate," "intend," "plan," and "would." For example, statements concerning financial condition, possible or assumed future results of operations, growth opportunities, industry ranking, plans and objectives of management, markets for our common stock and future management and organizational structure are all forward-looking statements. Forward-looking statements are not guarantees of performance. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include but are not limited to: (i) the possibility that the market for the sale of our new products, such as our APTIMA Combo 2 assay, or potential products, such as our test for the detection of WNV, may not develop as expected, (ii) the enhancement of existing products and the development of new products may not proceed as planned, (iii) the risk that our Ultrio Assay and West Nile virus clinical trials may not proceed as planned and may not be successful; (iv) the risk that our Ultrio Assay and West Nile virus products may not be commercially available in the time frames we anticipate, or at all, (v) we may not be able to compete effectively, (vi) we may not be able to maintain our current corporate collaborations, including our collaboration with Chiron, or enter into new corporate collaborations, (vii) we may not be able to complete development of our TIGRIS instrument, (viii) we are dependent on Chiron Corporation, Bayer Corporation and other third parties for the distribution of some of our products, (ix) we are dependent on a small number of customers, contract manufacturers and single source suppliers of raw materials, (x) changes in third-party reimbursement policies regarding our products could adversely affect sales of our products, (xi) changes in government regulation affecting our diagnostic products could harm our sales and increase our development costs, and (xii) our involvement in patent and other intellectual property litigation could be expensive and could divert management's attention. The foregoing list sets forth some, but not all, of the factors that could affect our ability to achieve results described in any forward-looking statements. For additional information about risks and uncertainties we face and a discussion of our financial statements and footnotes, see documents we have filed with the SEC, including our registration statement on Form S-3 that we filed on August 29, 2003 and all our periodic filings made with the SEC. We assume no obligation and expressly disclaim any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events. About Chiron Corporation Chiron Corporation, headquartered in Emeryville, California, is a global pharmaceutical company that leverages a diverse business model to develop and commercialize high-value products that make a difference in people's lives. The company has a strategic focus on cancer and infectious disease. Chiron applies its advanced understanding of the biology of cancer and infectious disease to develop products from its platforms in proteins, small molecules and vaccines. The company commercializes its products through three business units: biopharmaceuticals, vaccines and blood testing. For more information about Chiron, visit the company's website at http://www.chiron.com/ . For more information about Chiron Blood Testing visit http://www.ebloodbank.com/ . This news release contains forward-looking statements, including statements regarding sales growth, product development initiatives, new product indications, new product marketing, acquisitions and in- and out-licensing activities, that involve risks and uncertainties and are subject to change. A full discussion of the company's operations and financial condition, including factors that may affect its business and future prospects, is contained in documents the company has filed with the SEC, including the form 10-Q for the quarter ended June 30, 2003, and the form 10-K for the year ended December 31, 2002, and will be contained in all subsequent periodic filings made with the SEC. These documents identify important factors that could cause the company's actual performance to differ from current expectations, including the outcome of clinical trials, regulatory review and approvals, manufacturing capabilities, intellectual property protections and defenses, stock-price and interest-rate volatility, and marketing effectiveness. In particular, there can be no assurance that Chiron will increase sales of existing products, successfully develop and receive approval to market new products, or achieve market acceptance for such new products. There can be no assurance that Chiron's out-licensing activities will generate significant revenue, nor that its in- licensing activities will fully protect it from claims of infringement by third parties. In addition, the company may engage in business opportunities, the successful completion of which are subject to certain risks, including shareholder and regulatory approvals and the integration of operations. Consistent with SEC Regulation FD, we do not undertake an obligation to update the forward-looking information we are giving today. For further information, please contact: Anne Simmons, Investor Relations Department of Gen-Probe Incorporated, +1-858-410-8904, ; or Chiron Corporate Communications & Investor Relations, media, +1-510-923-6500, or investors, +1-510-923-2300; or Jeannine Medieros, Vice President of Euro RSCG Life NRP, +1-415-901-3709, . Web site: http://www.gen-probe.com http://www.chiron.com http://www.eBloodbank.com DATASOURCE: Gen-Probe Incorporated CONTACT: Anne Simmons, Investor Relations Department of Gen-Probe Incorporated, +1-858-410-8904, ; or Chiron Corporate Communications & Investor Relations, media, +1-510-923-6500, or investors, +1-510-923-2300; or Jeannine Medieros, Vice President of Euro RSCG Life NRP, +1-415-901-3709,

Copyright