Sigma-Aldrich buys equity stake in Benitec in return for RNAi technology licence
Global supplier of biochemical research reagents and kits, Sigma-Aldrich, has acquired an equity stake in international biotech company Benitec, in exchange for a licence to use Benitec's RNA interference (RNAi)-based technology. The California, US-based Benitec will receive more than US$4.5m from the equity and licensing transactions.
Global supplier of biochemical research reagents and kits, Sigma-Aldrich, has acquired an equity stake in international biotech company Benitec, in exchange for a licence to use Benitec's RNA interference (RNAi)-based technology. The California, US-based Benitec will receive more than US$4.5m from the equity and licensing transactions.
Shaf Yousaf, president of Sigma-Aldrich's Research Biotechnology business unit, said: 'Sigma-Aldrich has put in place a major intellectual property portfolio in RNAi which positions us well for market leadership in RNAi research reagents. Additionally, the equity stake in Benitec ensures our ability to capitalise on their know-how and proprietary technologies to deliver innovative tools and services to the biopharmaceutical industry.'
In return for an exclusive licence in the research reagent field, Sigma will make an initial payment of US$2m as well as continuing royalties on product sales and sublicensee revenue. Sigma also receives a licence in the research reagent field to patents co-owned by Benitec and Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia for RNAi in non-human applications.
Benitec's lead therapeutic programs are for Hepatitis C Virus (HCV) and the Human Immunodeficiency Virus (HIV). The company's RNA-based HIV therapeutic, co-developed with the Center for Biomedicine & Genetics in Los Angeles, will enter Phase I clinical trials in early 2006. Its RNAi therapeutic for HCV will enter clinical trials in late 2006.