British Biotech Signs Anti-Cancer Drug Devt Rights Deal
DOW JONES NEWSWIRES
LONDON -- Biotech plc and MethylGene Inc., a privately-held Canadian biopharmaceuticals company, have entered into a collaboration granting British Biotech the European development and commercialisation rights for MG98, MethylGene's experimental anti-cancer drug, currently in Phase II clinical development in North America.
In addition, British Biotech has been granted an exclusive one-year option, renewable for a second year, to license preclinical compounds that emerge from MethylGene's complementary small molecule DNA Methyltransferase (DNA MT) inhibitor programme for cancer.
MG98 is a novel, second-generation, antisense compound. It is designed to disrupt the production of DNA MT, an enzyme that is implicated in uncontrolled tumour growth, by inhibiting its expression.
MG98 is currently in two Phase II trials in North America, in head and neck cancer and renal cell carcinoma (kidney cancer), and one Phase I trial in advanced myelodysplasia (MDS) and relapsed/refractory acute myeloid leukaemia.
British Biotech will expand the MG98 Phase II programme by funding additional studies in cancers in which expression of DNA MT is implicated and will work closely with MGI PHARMA and MethylGene on further development of MG98.
British Biotech and MGI PHARMA expect to share the Phase III development costs equally.
British Biotech and MethylGene have also formed an agreement on MethylGene's research programme for the design and synthesis of small molecule inhibitors of DNA MT.
This programme aims to produce drugs that directly inhibit the action of DNA MT, rather than inhibiting the production of the enzyme as is the case for MG98.
Under the agreement between the two companies, British Biotech has secured a one-year option, renewable for a second year, to the European development and commercialisation rights for compounds emerging from this research.
Under the Licence, Development and Commercialisation Agreement, British Biotech will make an initial research and development payment to MethylGene of U.S.$1.7 million. This will be followed by milestone payments of up to U.S.$12.8 million based on successful regulatory approval and commercialisation for MG98 in Europe.
MethylGene will also receive undisclosed royalties on sales. British Biotech will make additional equity investments, research and development payments and milestone payments to MethylGene if the option to further participate in the small molecule research programme is exercised.
In addition, under a separate Stock Purchase Agreement, British Biotech will make an equity investment of U.S.$2 million in MethylGene. |
