Press Releases

Nanogen Gains Access to Diagnostic Markers Through Investment in Jurilab

Jul 26, 2005

SAN DIEGO, July 26 /PRNewswire-FirstCall/ -- Nanogen, Inc. (Nasdaq: NGEN), developer of advanced diagnostic products, announced today it has made an equity investment in Jurilab Ltd., a Finnish company focused on the discovery and identification of new genes and gene markers associated with the root cause of common diseases and drug responses. Through its investment, Nanogen will acquire certain rights to develop diagnostic products based on genes and gene markers discovered by Jurilab. Jurilab's initial efforts focus on cardiovascular and metabolic diseases including adult onset diabetes. Nanogen will also become a distributor of Jurilab's pharmacogenomic products and services and offer business development infrastructure and other resources to further the Jurilab business. Nanogen has initially invested 1,250,000 euros for a less than 20% equity interest and will invest an equal amount within six months. The investment agreement includes provisions for the full acquisition of Jurilab at Nanogen's election. Additional terms of the agreement were not disclosed.

"This investment in Jurilab is an important part of our strategic operating plan to secure access to important molecular targets for advancing the use of diagnostics and personalizing healthcare," said Howard C. Birndorf, Nanogen chairman and chief executive officer. "Jurilab's programs in cardiovascular diseases and diabetes and related pharmacogenomics match our own commercial product programs. Working together, we can accelerate development of products for the growing molecular diagnostic market."

"Nanogen is an ideal investment partner for us. While we provide research and testing services based on our extensive scientific resources, Nanogen provides a ready commercial outlet for markers we identify as well as access to diagnostic development expertise," stated Kari Paukkeri, Jurilab chief executive officer. "The union of our intellectual property portfolios will create the opportunity to make a significant impact on healthcare."

Jurilab is a privately held company that was formed in 1985 with close ties to the Research Institute of Public Health at University of Kuopio, Finland. This relationship has allowed Jurilab, and now Nanogen, to have rights and access to the unique collection of DNA samples and phenotypic data from the East Finland founder population. Founder populations are excellent resources for genetic studies because their high degree of homogeneity makes them ideal for the discovery of disease-linked gene mutations. Based on the extent of data collected, and the prospective nature of the collection over 20 years, Jurilab's genetic discovery and validation not only address the underlying causes of common diseases, but also those factors which contribute to disease progression or disease complications. Jurilab's BlockMap(TM) genetic discovery platform utilizes and can potentially support programs in more than 30 disease indications. Jurilab applies its proprietary technologies, including Hierarchical Phenotype-Targeted Sequencing (HPTS(TM)), to mine this database and rapidly identify disease-relevant genetic variants. The novel biomarkers can then be used in Jurilab's testing services or licensed to diagnostic or pharmaceutical customers who may be interested in the markers as targets for the development of diagnostic tests or new drugs. This partnership will provide Nanogen with a source of proprietary diagnostic markers for use in identifying the predisposition to disease and pharmacogenetic testing for related drug responses.

About Nanogen, Inc.

Nanogen's advanced diagnostics provide researchers, clinicians and physicians worldwide with improved methods and tests to predict, diagnose and ultimately help treat disease. The company's products include real-time PCR reagents, the NanoChip(R) Molecular Biology Workstation platform for molecular diagnostic applications and a line of rapid point-of-care diagnostic tests. Nanogen's ten years of pioneering research involving nanotechnology holds the promise of miniaturization and continues to be supported for its potential for diagnostic and biowarfare applications. For additional information please visit Nanogen's website at www.nanogen.com.

Forward-Looking Statement

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including whether Jurilab's technology will be successfully commercialized, whether patents owned or licensed by Nanogen will be developed into products, whether the patents owned by Nanogen offer any protection against competitors with competing technologies, whether products under development can be successfully developed and commercialized, whether results reported by our customers or partners can be identically replicated, and other risks and uncertainties discussed under the caption "Factors That May Affect Results" and elsewhere in Nanogen's Form 10-K or Form 10-Q most recently filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Nanogen disclaims any intent or obligation to update these forward-looking statements.