Pharmacia in gene hunting tie-up with DeCode
By David Firn in London [FT]
Published: January 15 2002 18:01 | Last Updated: January 15 2002 18:39
Pharmacia, the US pharmaceuticals company, has linked up with DeCode
Genetics, the Icelandic biotechnology company, to hunt for genes involved in heart
disease. The companies hope to identify the patients most likely to benefit from
one of Pharmacia's new drugs.
The drug in question was not revealed, but is believed to be Eplerenone, a
treatment under development for high blood pressure.
Some patients with high blood pressure go on to develop heart failure, but there is
no way of predicting who. DeCode has the exclusive right to use Iceland's
extensive national health service records to hunt for disease genes.
It intends to develop a test to identify the patients who are likely to develop heart
failure. It will earn royalties on the test and sales of the drug.
Some industry analysts believe pharmacogenetics - genetic testing to determine
which medicines suit each patient - threatens to undermine the market for billion
dollar "one size fits all" treatments, by creating smaller groups of patients for new
drugs. But Kari Stefansson, chief executive of DeCode, said Pharmacia's sales
could be increased. "If we can figure out the genes behind the transition form
hypertension to cardiac failure we could broaden the use of the drug". Analysts
have forecast sales of about $630m by 2005 for Eplerenone.
The deal with Pharmacia marks a strengthening of DeCode's negotiating power.
A 1998 agreement to hunt for disease genes with Roche earns up-front research
fees, but the Swiss pharmaceuticals group will see most of the upside.
The Pharmacia deal will see DeCode share development costs in exchange for
significantly higher royalties. Mr Stefansson said similar deals were under
negotiation. "This deal is much more in keeping with what you will see from us in
future. It will give us much more of the upside when the drug comes to market."
Eplerenone is due to be filed for marketing approval later this year. The genetic
test will take "a few" years longer.
The deal is part of a trend for biotech companies based on a specialist technology
to move into drug development. Technology platforms can quickly be overtaken by
rival companies and the returns from discovering new medicines are usually
much larger. DeCode is also seeking to develop its own drugs. Last week it
agreed to pay $83.6m for MediChem, a US drug development company.
DeCode shares were up 5c at $9.05 in afternoon trading in New York. Pharmacia
was down 73c at $40.37. |
