Cubist, Novalon deal

The companies extended through February 2001, their May 1997 research collaboration to screen antibacterial and antifungal target proteins and discover inhibitors of these targets using Novalon's Biomolecular Recognition System (see BioCentury, May 12). In the original agreement, CBST invested $1 million and received a six-month option to acquire Novalon. Under the extension, CBST agreed to waive its option to acquire Novalon, and sold its equity position to Novalon for $2 million. CBST, however, does have an option to purchase up to 20 percent of Novalon from existing shareholders. Also under the extension, CBST will continue to make research support payments to Novalon and pay royalties on sales of products developed using Novalon technology. ...