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Deltagen Says Subscription to DeltaBase Delayed

NEW YORK, Dec. 21 - Deltagen said on Monday that a subscription to its DeltaBase technology expected to close before the end of the year will be delayed until the first quarter of 2002.


The deal, with an undisclosed company, "is still very much alive and is going to happen but probably won't happen until the first quarter," a spokeswoman said.


Each DeltaBase subscription is worth approximately $15 million over three years to Deltagen. "It's a significant deal for us," she said. "Although there may be some slippage into the first quarter it's not something we believe will alter business in any way, shape, or form."


The Redwood, Calif.-based genomic-based biotechnology company is slated to record $10 million to $12 million in revenue for 2001.


In May, Deltagen sold part of its DeltaBase technology to Vertex Pharmaceuticals. According to both firms, the subscription will allow Vertex to obtain in vivo mammalian gene function on kinases, proteases, and other commercially relevant gene families.


Terms of that deal call for Vertex to receive intellectual property rights to commercialize drug products based on the research. In exchange, Deltagen will receive milestone and royalty payments. The agreement is for three years, with the option to extend for an additional two.


In a subscription arrangement with Pfizer signed last year, Deltagen charged $15 million for a three-year license. GlaxoSmithKline also has a subscription for DeltaBase, a database of functional and phenotypic information on mammalian genes obtained from mouse models.

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