Affinity Healthcare Worldwide Growth Trust

Lexicon Genetics Inc (LEXG)
4000 Research Forest Drive
Woodlands, TX 77381

Sector:	Research Services
Market Cap:	US$1.44 billion

Website:	www.lexicon-genetics.com

Lexicon Genetics is a leader in determining the function of genes for drug discovery using large-scale knockout mouse technology. This technology, which we refer to as gene trapping, alters the DNA of genes in a special variety of mouse cells, called embryonic stem (ES) cells, which can be cloned and used to generate mice. In these mice, the altered DNA disrupts, or ‘‘knocks out,’’ the function of the gene, enabling the study of the function of the missing gene. Their gene trapping technology also enables them to obtain DNA sequences of genes from human and mouse cells. Using this technology, they are discovering thousands of genes and expanding their OmniBank library of tens of thousands of knockout mouse clones.

Lexicon Genetics have established an Internet exchange, Lexgen.com , to enable researchers worldwide to access their OmniBank library and to form collaborations with Lexicon to discover pharmaceutical products based on genomics - the study of genes and their function. Through their ongoing collaborations with pharmaceutical companies, biotechnology companies and academic researchers, they receive fees and may obtain royalties and milestone payments from commercialization of pharmaceutical products developed using their genomics technologies. Lexicon believe that providing global access to their OmniBank library through the Internet will significantly accelerate genomics research and will enable them to establish a leadership position in the discovery of drug targets and proteins which can themselves be used as drugs, commonly called therapeutic proteins.

Lexicon Genetics’ collaborations are typically non-exclusive arrangements, and they retain the ability to pursue future applications of their technologies. Since September 1999, they have established collaborations with, among others, Millennium Pharmaceuticals, Inc., American Home Products, the R.W. Johnson Pharmaceutical Research Institute (a subsidiary of Johnson & Johnson), G.D. Searle & Co., Boehringer Ingelheim Pharmaceuticals, Inc. and N.V. Organon.