By Lisa Seachrist

Washington Editor

Genomics specialist Lynx Therapeutics Inc. closed deals with the German companies BASF AG and Hoechst Schering AgrEvo GmbH that together are worth up to $37.5 million.

Hayward, Calif.-based Lynx expanded a deal with BASF, of Ludwigshafen, to initiate a non-exclusive subscription to Lynx's differential gene expression technology and gene identification technologies. The collaboration is worth up to $12.5 million.

The $25 million deal with AgrEvo - a Frankfurt-based joint venture between Hoechst AG and Schering AG - centers around the company's mapping technology and its single nucleotide polymorphism (SNP) recognition technology. Lynx will provide DNA analysis, deliver genomic maps of certain plants and unearth SNPs for four different crops.

"It's very exciting for us," said Ed Albini, CFO for Lynx. "We've proven we can do things scientifically and we can now take that data and convince partners to come our way."

Lynx employs bead-based technologies that include Megasort, or parallel clone sorting, which enables the extraction of differentially expressed genes from any set of samples; Massively Parallel Signature Sequencing (MPSS), which identifies nearly all genes present in a given sample and allows the analyses of a million pieces of DNA at the same time; and high-resolution physical mapping, which maps any genome in a way that enables the positioning of any signature sequence. In addition, the company has SNP identification technology known as Megatype.

Under the terms of the BASF deal, BASF will pay Lynx a $4.5 million technology license fee plus $4 million per year for two years as a non-exclusive subscription fee to Lynx's Megasort and MPSS technologies. BASF may extend the subscription for one year for an additional $4 million.

BASF will have the right to use the technologies to pursue any research the company chooses.

The terms for the three-year AgrEvo deal aren't being disclosed, but could total up to $25 million. Included in the payments to Lynx are an up-front licensing fee and milestone payments.

The AgrEvo collaboration focuses on Lynx's Megatype and mapping technologies. Using Megatype, Lynx will identify SNPs that distinguish two populations. Lynx's mapping technologies could provide physical maps of a variety of plant genomes. Lynx will also provide AgrEvo access to Megasort and MPSS.

"There is a technology access fee for this deal," Albini said. "Most of the money comes from the analyses of genomic maps, milestones and licensing tied to the discovery of SNPs."

This is the second genotyping deal for Lynx, Albini said. In November 1998, Lynx signed a deal with DuPont, of Wilmington, Del., to use the technology to develop a large number of crops with improved traits. The company is looking to expand its genotyping business into humans, animals and microbes.

"This is an area where we would love to have additional partners," Albini said. "And, we are in discussions with other partners."

Lynx's stock (NASDAQ:LYNX) closed Wednesday at $11.375, up 37.5 cents per share.