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Hyseq and Deltagen Collaborate to Uncover Drug Targets

SAN FRANCISCO, Oct. 10 – Hyseq and Deltagen will collaborate in a project to analyze proteins for drug targets, the companies announced Wednesday.

Sunnyvale, Calif.-based Hyseq will supply about 200 secreted protein gene sequences for Redwood City-based Deltagen to analyze via mammalian gene knockout technology.

Costs will be shared, with Hyseq paying Deltagen approximately $10 million over two years, according to the companies. Additionally, Deltagen will receive $10 million in equity proceeds from the sale of 1.51 million shares of Deltagen common stock to Hyseq’s board chairman George Rathmann.

Development and commercial rights will be shared, according to the companies.

“This agreement provides us with access to what we believe is a unique patent portfolio,” William Matthews, CEO of Deltagen, said in statement. “By determining the key in vivo biological functions of these potentially rare and novel genes, we have an opportunity to enhance Deltagen's therapeutic protein pipelines.”

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