Celera sells cathepsin S inhibitor program to Schering

By Elaine Rigoli

Tampa, Fla., June 21 - Celera Genomics announced that Schering AG has acquired its cathepsin S inhibitor small-molecule drug program for the treatment of autoimmune diseases.

The financial terms of the transaction include an upfront cash payment of $5 million, half of which is payable to Celera upon closing of this agreement, and the remaining half will be payable upon the successful transfer of Celera's cathepsin S inhibitor assets, which is expected to be completed within four months.

If this program meets all developmental and commercial milestone events and results in drugs that are approved and commercialized in key geographical markets, it may generate future milestone payments to Celera of up to $360 million, according to a news release.

In addition, Celera will be entitled to percentage royalty payments up to the low double digits based on annual sales of any drugs commercialized from the program, the release said.

In an unrelated transaction, Celera also announced Wednesday that it has sold an undisclosed early stage preclinical small molecule program to an undisclosed venture capital investor.

The financial terms of the transaction for Celera include an upfront cash payment of $250,000, and an equity stake of 5% in a new company formed to move this program forward.

If this program results in the approval of a drug, it may generate potential future milestone payments to Celera of up to $15 million.

Celera, an Applera Corp. business, is based in Rockville, Md.

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