11/2/99 Dow Jones News Serv. 08:20:00
Dow Jones News Service
Copyright (c) 1999, Dow Jones & Company, Inc.
Tuesday, November 2, 1999
Elan Corp., Photogen Tech In Development Pact
By Mary Ellen Lloyd
CHARLOTTE -(Dow Jones)- Elan Corp. PLC (ELN) and Photogen Technologies Inc.
(PHGN) have formed a joint venture to develop a way to detect and treat cancers
that spread to lymph nodes.
The minimally invasive technique, which the companies said could more than
halve the number of lymph node surgeries performed, would likely be Photogen's
first product to hit commercial markets, Photogen Chief Executive and President
John Smolik told Dow Jones Newswires.
Photogen, which trades on the over-the-counter bulletin board, is a
development-stage company based in Knoxville, Tenn., and has no operating
revenue.
The joint venture also allows Irish pharmaceutical company Elan to exploit
technology it purchased last year from Eastman Kodak Co. (EK) as it develops
additional drug-delivery systems products.
Under the agreement, Elan will provide Photogen with a $4.8 million credit
facility to fund its share of the development costs of the joint venture. In
addition, Elan has purchased $6 million of newly issued Photogen common stock,
or about 1.3% of shares outstanding.
The companies did not provide an ownership breakdown for the joint venture's
products.
Elan and Photogen intend to develop diagnostic imaging agents that can be
injected into patients to reveal lymph nodes where cancer has spread and to
determine how advanced the cancer is.
The materials would also include a radiosensitizer that would reduce tumor
cells when exposed to low-level radiation, allowing doctors to locate, diagnose
and begin treating the disease in one non-invasive procedure.
Elan's Elan Phamaceutical Technologies unit is using its NanoCrystal
stabilized nanoparticulate formulation technology, which it purchased from
Kodak, to develop the agents. Phase II human trials with the lead candidate are
expected to begin in 2000.
Photogen estimates it could have resulting products on the market by 2002.
Current methods to determine whether cancers have spread to the lymph nodes
require injecting materials and tracking them to the sentinel lymph node, then
conducting a biopsy and, if necessary, surgery.
"With our approach, we believe we can significantly reduce the number of
surgeries required to allow staging of the disease related to breast cancer,
melanoma, prostate, lung and head and neck cancers," Smolik said.
He estimated the market for the new treatment at between $100 million and
$200 million.
Photogen Technologies plans to seek a listing on Nasdaq, but Smolik declined
to provide a timeframe for doing so.
- Mary Ellen Lloyd, Dow Jones Newswires; 704-371-4033
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