Geron and Pharmacia & Upjohn announce signing ofagreement to develop new class of anticancer...

MENLO PARK, Calif.--(BW HealthWire)--March 24, 1997--Geron Corporation (NASDAQ:GERN) and Pharmacia & Upjohn (NYSE:PNU) today announced that they have signed a definitive agreement to collaborate in the discovery, development and commercialization of a new class of anticancer drugs that inhibit

The agreement will become effective upon receipt of regulatory approval.

The agreement provides for payments to Geron of up to $58 million, including an aggregate equity investment of $10 million in Geron, research funding and milestone payments which are partly recoverable against future royalties.

Geron will also receive royalties on sales and limited U.S. co-promotion rights. The completion of this definitive agreement follows the signing of a Heads of Agreement in December, in which the two companies confirmed their intent to collaborate, and Pharmacia & Upjohn made an initial $2 million equity investment in Geron.

"This agreement fully reflects the commitment of Pharmacia & Upjohn to forefront research projects in oncology, such as telomerase inhibition, from which innovative, improved therapies for cancer can be expected," stated Lamberto Andreotti, senior vice president of Pharmacia & Upjohn, responsible for the company's worldwide activities in oncology.

According to Ronald Eastman, president and chief executive officer of Geron, "We are looking forward to working with Pharmacia & Upjohn, a global leader in the field of oncology, on the development of telomerase inhibitors and benefiting from their successful experience in developing and commercializing oncology therapeutics."

The partnership with Pharmacia & Upjohn follows Geron's alliance with Kyowa Hakko Kogyo Co., Ltd., a leading oncology company in Japan, and creates an enhanced three-way global collaboration for the development and commercialization of telomerase-based anticancer products.

Pharmacia & Upjohn, Inc., is a research-based pharmaceutically focused company dedicated to helping people around the world live longer and fuller lives. The company was formed through a merger of Pharmacia AB and The Upjohn Company, and began operating in November 1995. Pharmacia & Upjohn is a provider of human health care products and related products, and operates on a global basis. The company has a corporate management center in London and major research and manufacturing centers in the United States, Sweden and Italy.

Geron Corporation is a biopharmaceutical company exclusively focused on discovering and developing therapeutic and diagnostic products based upon fundamental biological mechanisms underlying cancer and other age-related diseases. -0-

Note to Editors: This press release may contain forward-looking statements regarding Geron Corporation which are subject to change. Actual results may differ materially from those described in any forward-looking statements. Additional information on potential factors that could affect the company's financial results are included in the company's report on Form 10-K for the year ended December 31, 1996.

CONTACT: Geron Corp.

David Greenwood, 415/473-7700

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StratiPoint Group

Mike Jackman, 415/388-3216

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Burns McClellan

Lisa Burns/John Nugent, 212/505-1919