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Executive Summary

AMERICAN HOME PRODUCTS WILL CO-DEVELOP MICROGENESYS' VAXSYN HIV-1 AIDS vaccine under an R&D agreement announced Sept. 17. According to the two companies, MicroGeneSys "will receive benchmark payments from American Home Products upon the attainment of certain clinical and regulatory milestones." American Home also has made an equity investment covering a minority stock position in the West Haven, Conn.-based R&D firm. Neither firm disclosed the value of the equity investment or R&D funding involved in the deal. Although the two companies did not address possible licensing, presumably American Home Products would receive some marketing rights to the AIDS vaccine if the product is approved for marketing. The agreement specifically covers the development of MicroGeneSys' Vaxsyn HIV-1, which is based on the gp160 , the precursor to the envelope protein on the AIDS virus. The product was the first AIDS vaccine to reach clinical study in the U.S. and is currently undergoing trials for both prevention and treatment of AIDS. MicroGeneSys also has a second AIDS vaccine in development based on the p23 core antigen; that product is just enterin Phase I study. Investigators involved with studies of VaxSyn will make a total of seven presentations to the International Conference on Advances in AIDS Vaccine Development Oct. 1-5 in Clearwater Beach, Fla.

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