NEW YORK, Dec 4 - Gene Logic said Monday it had signed a multi-year, two-pronged subscription deal with LG Chemical, marking the company’s first foray into the South Korean market.
“Clearly we are looking for multiple opportunities in the Asian market,” said Robert Burrows, Gene Logic’s spokesman, noting that the company signed a distribution deal with Amersham Pharmacia Biotech K.K. in Japan about a month ago.
Under the terms of the most recent deal, LG Chemical has signed on for a three-year subscription to the Oncology DataSuite, a subset of the GeneExpress database that contains gene expression profiles for a number of human cancer types, for use in its drug discovery and development programs. The subscription agreement includes access to Gene Logic’s related software tools.
In addition, Gene Logic will also develop a custom gene expression database for LG, which will incorporate LG’s proprietary data into the Oncology DataSuite, thus enabling the company to access a combination of proprietary and non-proprietary data.
Burrows would not disclose the exact terms of the deal, but he said that three-year subscriptions to a subset of GeneExpress generally sell for $1 million to $3 million per year. The price for developing a proprietary database for LG will depend on the amount of research they ask Gene Logic to conduct, Burrows added.
As part of the deal to develop a customized database, Gene Logic will use its READSTM technology along with Affymetrix GeneChips to identify genes that are differentially regulated in samples taken from individuals with various gastrointestinal diseases.
Gene Logic will also study select tissues following exposure to proprietary and non-proprietary compounds and provide LG Chemical with new drug targets.
Burrows said that Gene Logic first formed a relationship with LG Chemical via LG's research affiliate in La Jolla, Calif., which helped them to then build a relationship with the Seoul-based parent company.
LG Chemical was not immediately available for comment.