MDZ up in Toronto, down in the US. This news isn't enough to offset the recent earnings miss (minor as it was) . . .
>>WEST CHESTER, PA and TORONTO, ON, Jan. 7 /PRNewswire-FirstCall/ - Cephalon Inc. (Nasdaq: CEPH - News) and MDS Proteomics Inc., a subsidiary of MDS Inc. (NYSE:MDZ - News; TSX:MDS - News), announced that the companies have entered a five-year agreement that will utilize MDS Proteomics' technologies to further enhance Cephalon's drug discovery efforts.
The collaboration covers a range of initiatives using MDS Proteomics' technologies with the objectives of accelerating the clinical development of and broadening the market opportunities for Cephalon's pipeline of small molecule compounds. Proteomics is the systematic analysis of protein functions and expression patterns in tissues. Currently, most drugs act by binding directly to proteins - or drug targets - that are associated with a particular disease, thereby modifying both the activities of the proteins and their cellular pathways. MDS Proteomics' proprietary technology enables observation of proteins and interactions not only to understand the underlying causes of disease but also to develop new drugs and diagnostic products.
The companies will collaborate and use MDS Proteomics' technologies including the application of differential analysis, chemiproteomics, phosphorylation fingerprinting (PhosMap(TM)) and protein interaction mapping (PathMap(TM)) with the goal of:
- expanding the potential disease indications for Cephalon's development
compounds,
- maximizing the potential of Cephalon's proprietary chemical library,
and
- identifying novel targets implicated in and critical for the
pathogenesis of diseases of the central nervous system.
MDS Proteomics will receive payments upon the successful achievement of specified milestones and will receive royalties on sales of products resulting from the collaboration. As part of the agreement, Cephalon purchased from MDS Proteomics a US $30 million 5 percent convertible note due 2010. The note is convertible into MDS Proteomics' common stock at an initial conversion price of US $22.00 per share, subject to adjustment if MDS Proteomics sells common stock at a lower price.
"We believe this collaboration has the potential to significantly enhance Cephalon's drug discovery efforts, particularly in the neurosciences," said Jeffry Vaught, Senior Vice President and President of Research and Development at Cephalon. "Working with MDS Proteomics will enhance our technological base for identifying and validating disease relevant therapeutic targets."
Frank Gleeson, President and Chief Executive Officer of MDS Proteomics, said, "We are pleased that Cephalon has chosen us as their proteomics partner. We believe that our unique, proprietary approaches to proteomics will have direct relevance to enhancing the discovery and clinical development of small molecule therapeutics at Cephalon."<<
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Cheers, Tuck |
