18 Biotechnology Law Report 181Number 2 (April 1999)Mary Ann Liebert, Inc.

Financial and Shareholder Affairs

{BLR 2879} Progenitor, Inc.

PROGENITOR CLOSES ITS DOORS

—Sale of Company Assets PlannedMENLO PARK, CAL. 12/18/99—After review-

ing the company's options, the Board of Directorsof Progenitor, Inc. has voted to close operations ef-fective immediately. The company has been usinga functional genomics platform combining devel-opmental biology and genetics to identify and char-acterize genes involved in asthma and other dis-eases.

The Board's action followed the company's in-ability to secure sufficient financing to allow oper-ations to continue. A small staff will remain toarrange the sale of Progenitor's assets.

{BLR 2880} D. Blech & Co.-Cardiovascular Disease-LXR-RPR Gencell.

LXR SETTLES SECURITIES LITIGATION

—Reports Collaboration in CardiovascularDisease

RICHMOND, CAL. 1/25/99—LXR Biotechnol-ogy, Inc., reported today that it has reached an agree-

ment in principle to settle three class action lawsuitsarising from the initial public offering of the com-

pany's stock in May 1994. The suits—Katz v. Blech,Degulis v. LXR Biotechnology, and In re D. Blech& Co. Securities Litigation, were pending in U.S.District Court for the Southern District of NewYork.

The agreement in principle provides for dismissalof all claims against the company and five of itsformer directors. Details remain to be negotiated,after which, the terms must be approved by thecourt.

Collaboration on cardiovascular disease

On January 7, LXR and Rhone-Poulenc RorerGencell (Collegeville, Penn.) announced a collabo-ration involving the SARP-1 gene, on which LXRholds a U.S. patent. The secreted apoptosis-relatedproteins (SARPs) either inhibit or enhance pro-grammed cell death. The product of the SARP-1gene protects cells against apoptosis and may haveutility in averting death of cardiomyocytes that havebeen deprived of oxygen, such as by arterialstenoses or myocardial infarction.

Under the agreement, RPR Gencell will deter-mine the cytoprotective role of the SARP-1 gene inischémie heart muscle. The company will then havethe right of first negotiation to acquire rights to usethe technology for cardiovascular conditions. Thespecific terms were not provided in the announce-

ment.

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