DuPont (NYSE: DD) today announced that it has signed definitive agreements to acquire Verdia, Inc., a wholly owned subsidiary of Maxygen, Inc. (Nasdaq: MAXY) headquartered in Redwood City, California.

Subject to regulatory approvals and other customary closing conditions, DuPont will purchase the plant sciences company for $64 million in cash.

By purchasing Verdia, DuPont will have worldwide, royalty-free, exclusive rights to use Maxygen's MolecularBreeding(TM) directed evolution platform (gene shuffling) for agricultural applications across its Agriculture & Nutrition platform.  All Verdia employees will receive offer letters for employment with DuPont, and DuPont plans to retain Verdia's name, its bay-area offices and the Verdia leadership team.

"Verdia will significantly enhance our gene research and trait discovery capabilities," said Jim Miller, DuPont vice president, Crop Genetics Research and Development.  "The technology should allow us to reach research targets up to three years faster and more efficiently."

Russell Howard, Maxygen's CEO, said the cash proceeds from the sale of Verdia are non-dilutive to Maxygen stockholders. "The cash will strengthen our ability to advance our human therapeutics product candidates, consistent with our focus in this area," said Howard.  "This transaction also reflects the power of our technologies, and we are pleased to have DuPont continue with the success we have created to date in agriculture as we concentrate on generating similar successes in our human therapeutics programs."

Scientists at Verdia and DuPont subsidiary, Pioneer Hi-Bred International, Inc., unveiled the first-ever agricultural trait developed through gene shuffling in the May 21 issue of Science.  Pioneer currently has this trait (glyphosate resistance) in field tests in corn and expects to have it on the market within the next five to six years.

"We know we work well together from our research alliance," said Miller. "Verdia's first-rate technology and top-notch people will bring real value to our research teams and to our customers."

The gene shuffling technology should help Pioneer identify and develop a number of new traits to help plants survive environmental stress, including drought - a universal challenge causing more than $8 billion in losses for farmers globally.  Pioneer also plans to use the technology to develop crops that more efficiently utilize key inputs such as nitrogen.  Each year, U.S. farmers apply an average of 136 lbs. of nitrogen per acre, which have cost farmers an average of $40 per acre over the past 10 years.

Nutrition & Health businesses at DuPont could also tap Verdia technology and expertise to improve plants' health benefits, nutritional value and taste for consumers and processing attributes for food manufacturers.

Maxygen plans to use the proceeds from this transaction to fund the advancement of its human therapeutic development programs.  The company has an improved interferon alpha in development with Roche for the treatment of hepatitis B and C infections - an improved interferon beta for multiple

sclerosis and a novel G-CSF for neutropenia both of which Maxygen plans to advance into clinical development over the next 18 months.

Maxygen, Inc., headquartered in Redwood City, Calif., is focused on creating novel products using its integrated proprietary technologies for human therapeutics.  Maxygen's technologies bring together advances in molecular biology and protein modification to create novel biotechnology products.

DuPont is a science company.  Founded in 1802, DuPont puts science to work by solving problems and creating solutions that make people's lives better, safer and easier.  Operating in more than 70 countries, the company offers a wide range of products and services to markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.