Question for the board. Isotechnika finally signed on Roche as their partner. I know that after the Igen debacle Roche is not held in high esteem. My choice was Novartis, however Roche was probably willing to offer more. From the limited information is this alliance with Roche, typical, worse, or better than the "average" agreement. Is there any significance to the % of gross profits?
"Small Edmonton drug firm with new transplant drug signs deal with Roche
EDMONTON (CP) - Shares in biotechnology company Isotechnika Inc. rose 12 per cent Tuesday after it announced a global co-development deal for its transplant drug with Swiss drug giant Roche.
Isotechnika shares were up 58 cents to close at $5.47 in heavy trading of 2.8 million shares on the Toronto stock market. Edmonton-based Isotechnika (TSE:ISA - news) said the drug is used to prevent rejection by the immune system after an organ transplant or for the treatment of auto-immune diseases such as rheumatoid arthritis and psoriasis.
Isotechnika said Roche will make "up-front and milestone payments to Isotechnika." As well, if "all development milestones are achieved, the amount of this deal will be $215 million US."
Roche, which has exclusive worldwide marketing rights to the drug, will contribute about 70 per cent of the development cost and will also pay Isotechnika a percentage of gross profits.
Roche is a global health care company that operates in pharmaceuticals, diagnostics and vitamins.
"This alliance with Roche provides our company with the expertise and resources essential to the advancement of (the drug) into the commercial marketplace," said Robert Foster, who founded the company in 1993, and is its current chairman and chief executive.
Isotechnika said the drug is in early phase II clinical development and the studies indicate that the drug is "more potent and far less toxic" compared with other drugs with a similar purpose.
"Our strategy is to in-license interesting compounds that complement our product portfolio," William Burns, head of Roche's pharmaceuticals division, said in a release.
"Roche is already a major player in the area of transplantation therapies and (Isotechnika's drug) has the potential to significantly strengthen our position in this important field."
For the year ended Dec. 31, Isotechnika had revenue of $8.4 million and a net loss of $11.8 million. At year's end, the company had $53.3 million in cash and short-term investments." |
