Roche signs nanotechnology agreement

Roche and 454 Life Sciences, a majority-owned subsidiary of CuraGen Corporation, have entered into an exclusive five-year worldwide agreement for the development, promotion, sale and distribution of 454's nanotechnology-based Genome Sequencing Systems, including proprietary kits and reagents.

The hallmark of 454's technology is the nanotechnology-based approach to sequencing, which allows a single instrument to produce over 20 million nucleotide bases per four hour run; more than 100 times the capacity of instruments using the current macroscale technology. Based on integrating proprietary picolitre-technologies, patented light emitting sequencing chemistries and state-of-the-art informatics, the patented Genome Sequencing System is a scalable, ultra-fast and cost-effective system with applications for whole genome sequencing and deep sequencing of genes of interest.

Under the terms of the agreement 454 will receive a margin on products manufactured for Roche Diagnostics, royalties on net sales of licensed products and various milestone payments, reaching a total of up to $62m. Roche Diagnostics receives the rights to negotiate distribution of 454's products in the regulated diagnostic market and renewal of the exclusive distribution agreement, contingent upon meeting minimum performance criteria.

Roche Applied Science, a business area of Roche Diagnostics, will sell 454's products through its sales and marketing organization, distribute its products through Roche Diagnostics' established supply chain, and provide technical support to purchasers of the system and the associated reagents.

454 will continue to manufacture instrument systems and reagent kits with the option to transfer the responsibility for reagent manufacturing to Roche Diagnostics given sufficient sales volume.

The agreement will broaden the reach of 454's products and enable it to focus on r&d of next generation technology and applications for high throughput sequencing.