Vical and Baxter Sign Agreement for Hemophilia Gene Therapy

VICAL.
9373 TOWNE CENTRE DRIVE, SUITE 100, SAN DIEGO, CA 92121 PHONE: [phone] FAX: [phone]
FOR IMMEDIATE RELEASE
December 14, 1993
Contact: Martha J. Demski
Vice President and
Chief Financial Officer
[phone]
VICAL AND BAXTER SIGN AGREEMENT FOR
HEMOPHILIA GENE THERAPY
San Diego, CA, December 14, 1993 -- Vical Incorporated (NASDAQ:VICL) and
Baxter Healthcare Corporation (NYSE:BAX) today announced that they have entered into an
agreement to jointly evaluate and develop the use of Vical's proprietary gene-based
pharmaceutical technology for the treatment of hemophilia. The agreement includes a research
collaboration and an option for Baxter to take an exclusive license to Vical's "naked" DNA gene
therapy technology in the field of hemophilia. If Baxter exercises its options to the license, the
license would include provision for milestone and royalty payments to Vical.
Vical's gene delivery technology involves the administration of non-viral gene sequences
directly into tissues, which then triggers the tissue to make the corresponding proteins. The
Baxter-Vical collaboration will focus on the use of gene sequences encoding the human clotting
proteins Factor VIII or Factor IX. These proteins are deficient in patients suffering from
hemophilia A and B, respectively, resulting in a life-threatening bleeding disorder.
Dr. Alain Schreiber, President and Chief Executive Officer of Vical, said, "We are
delighted to work with Baxter, a committed leader in the field of hemophilia product
development and marketing. We believe this collaboration will be a winning combination to
maximize the value of Vical's technology."
Commenting on the agreement, Dr. William Johnston, Vice President and General
Manager, Gene Therapy business unit of Baxter's Biotech Group said, "Application of Vical's
gene therapy technology to hemophilia, if successful, could result in a safe and cost-effective
approach to the chronic therapy of hemophilia. We are pleased to be working with a leader in
the field of direct gene therapy."
Baxter is pursing several new approaches to the treatment of hemophilia. It is developing
proprietary membrane technology to encapsulate modified cells capable of producing therapeutic
amounts of clotting factor in vivo. Baxter is also developing, in collaboration with others,
improved cell lines designed to produce and secrete Factor VIII or Factor X. "The Vical
agreement further demonstrates Baxter's commitment to pursuing a multi-pronged approach with
state-of-the-art technologies for treating these very serious diseases," said Dr. Johnston.
(over)

111111 II 111111111 i 11111111 iii II
5571095.0360.005