AstraZeneca

In November 2004, CAT and AstraZeneca (http://www.astrazeneca.com) commenced a major strategic alliance for the joint discovery and development of human monoclonal antibody therapeutics, principally in the therapeutic area of inflammatory disorders.

CAT had the option of co-investing in and co-managing all programmes through to clinical proof-of-concept and of continuing to fund jointly, one in every five product candidates that reaches clinical proof-of-concept up to product launch. If CAT opted out after the discovery phase it would receive milestone and royalty payments. If CAT opted out at clinical proof-of-concept stage it would receive milestone and royalty payments at a higher level. For those programmes that CAT funded through to product launch, it would receive higher royalties, sales milestones and an option to co-promote these products in the US. If AstraZeneca opted out of programmes it would receive milestone and royalty payments. AstraZeneca would receive the right to opt into and develop jointly CAT discovery programmes already in existence and future discovery programmes that CAT may independently initiate.

CAT was principally responsible for antibody discovery, manufacturing process development and the supply of material for exploratory clinical trials. AstraZeneca was principally responsible for translational biology, clinical development programmes, regulatory filings and commercialisation.

To complement the alliance, AstraZeneca subscribed for 10,217,983 CAT shares for a total investment of £75 million, representing 19.9% of the enlarged share capital of CAT.

Since November 2004, excellent progress had been made. Six Discovery projects, one pre-existing CAT Discovery programme adopted into the Alliance and five new programmes, all had progressed to lead isolation stage on schedule by June 2005. Building on the success of this existing collaboration, the acquisition of CAT by AstraZeneca resulted in CAT becoming central to AstraZeneca’s plans to establish a major international presence in the research and development of biological therapeutics.