Callisto, Genzyme Revise Agreement

Callisto Pharmaceuticals has restructured its license agreement with Genzyme Corp. for Atiprimod, Callisto’s lead drug candidate to treat advanced carcinoid cancer. In August 2002, Callisto’s subsidiary, Synergy, acquired worldwide exclusive rights to develop, manufacture and commercialize the drug from AnorMED, Inc.  Genzyme acquired AnorMED in November 2006. The revised agreement eliminates all milestone payments and reduces royalties owed to Genzyme. In return, Callisto will pay an upfront fee to Genzyme in 2008.
   
“This restructured licensing agreement significantly improves the potential economic upside value for Atiprimod and puts us in a stronger position to further develop and commercialize the product,” said Gabriele M. Cerrone, chairman of Callisto. “We recently completed enrollment in our Atiprimod Phase II trial in advanced carcinoid cancer patients and we expect to complete an interim analysis of the data by the end of the first quarter of this year. We believe this new agreement with Genzyme will provide substantial help in obtaining financing for a potential Phase III trial.”