Maxygen's option and licensing arrangement with Cangene expires

Jul 17 2010

Maxygen, Inc. (Nasdaq: MAXY), a biotechnology company focused on the development of improved protein drugs, today announced that its option and licensing arrangement with Cangene Corporation (TSX: CNJ) has expired. Under the agreement, Maxygen had granted Cangene an option to obtain an exclusive license to Maxygen's proprietary MAXY-G34 protein therapeutic for use in treating acute radiation syndrome (ARS). The expiration resulted from the decision by the Biomedical Advanced Research and Development Authority (BARDA), an agency within the U.S. Department of Health and Human Services, to eliminate Cangene from the competitive range with respect to its bid on a contract for developing a treatment for ARS.

“Management's Discussion and Analysis of Financial Condition and Results of Operations”

Under the agreement, which the parties entered into in May 2009, Cangene paid Maxygen a non-refundable option fee of $500,000. If Cangene had been awarded the government development contract and exercised the option, Maxygen would have been eligible to receive additional payments from Cangene, including licensing fees and a specified percentage of any net contract revenues recognized by Cangene under the government contract. As a result of the expiration, Maxygen is no longer eligible for any further payments under the agreement.

Maxygen continues to retain all rights to MAXY-G34 for commercial development of all therapeutic areas, including all rights for chemotherapy-induced neutropenia and ARS indications.