Borealis Ventures portfolio company, GlycoFi, Inc., and Merck & Co., Inc. (NYSE: MRK) have jointly announced the signing of a definitive merger agreement whereby Merck will acquire 100 percent of the equity of GlycoFi, which will become a wholly- owned subsidiary of Merck & Co., Inc. The all-cash transaction, valued at approximately $400 million, is expected to close in the second quarter of 2006, subject to customary closing conditions and clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act.

This acquisition affirms GlycoFi’s innovation and leadership in the field of yeast glycoengineering and optimization of biologic drug molecules. GlycoFi’s proprietary protein expression technology permits precise control over the sugar (glycan) structures of biologic drugs. This breakthrough glycoengineering capability allows the Company to modify the solubility, half-life, bioavailability, and other pharmaceutical attributes of therapeutic proteins, and also offers favorable production and scale-up economics.

GlycoFi was founded in 2000 by Dr. Charles E. Hutchinson and Dr. Tillman U. Gerngross, both faculty members at Dartmouth College’s Thayer School of Engineering. Borealis initially invested in the Company in 2002 and then continued to support GlycoFi in its follow-on financings as the Company developed its technology, built its intellectual property portfolio, established collaboration partnerships, and recruited a team of over 50 employees to its Lebanon, NH headquarters.

“We are proud of all that the GlycoFi team has accomplished,” said Phil Ferneau, Borealis Managing Director. “We applaud GlycoFi’s founders for their entrepreneurial vision in identifying a key production challenge facing the growing biologics industry and for their skill in developing a technology solution that not only addresses the production challenge, but also paves the way to developing more effective biotherapeutics. We have enjoyed the opportunity to work with the GlycoFi team and appreciate all the efforts that our lead co-investors have contributed towards the Company’s success.”

GlycoFi co-founder and Chairman Hutchinson thanked Borealis Ventures for its early and steady support, “GlycoFi has been fortunate to have the backing of investors like Phil Ferneau and his partners at Borealis who understand the opportunities and challenges of commercializing early-stage technology. Phil believed in us from the beginning and has always been there for us.”

Indeed, GlycoFi exemplifies the opportunity for early- stage technology commercialization that is one of Borealis’ major investment themes. According to Ferneau, "GlycoFi demonstrates how Dartmouth College’s faculty, students and alumni are creating world-changing technology and building successful companies here in New Hampshire to commercialize those innovations." He added, “GlycoFi was Borealis Ventures’ very first investment and we are committed to partnering with many more entrepreneurs at Dartmouth and throughout Northern New England who want to follow GlycoFi’s example.”