Isotechnika Earns C$21.9M Drug Devt Milestone Payment
Thursday May 15, 12:58 pm ET
[I was almost put off by what appeared as spamming from the proponents of Isotechnika. But perhaps it is time to re-evaluate. At least Roche seems to be fairly convinced. Putting in a fair amount of money (and looking the other way when their daughter tries something else with Novartis)].
EDMONTON -(Dow Jones)- Isotechnika Inc. earned a C$21.9 million milestone payment for the positive results of a clinical trial for its lead immunosuppressive drug, ISA247.
In a news release, the biotech company said the development milestone, under a collaboration agreement with Roche Holding AG , relates to the positive results of its recently completed Phass II clinical trial of ISA247 in patients with moderate to severe psoriasis.
As reported, Isotechnika entered into a collaboration agreement with Roche last April for the global co-development and commercialization of ISA247.
The milestone payment comprises C$8.4 million in cash and C$13.5 million in equity investment.
"The achievement of this drug development endpoint confirms the intrinsic value of our innovative technology, the excellent progress being made in our clinical development program for ISA247 and the inherent strength of our strategic partnership with Roche," said Dr. Randall Yatscoff, Isotechnika's president and chief operating officer.
Yatscoff said the payment will enable the company to preserve its strong cash position while pursuing its strategy of expanding its drug pipeline and continuing its support of the advancement of ISA247.
ISA247 is currently in Phase II clinical development for two indications, kidney transplantation and psoriasis. The Phase II psoriasis study was completed in November 2002 and the company released the study results in March 2003 which showed that ISA247 met or exceeded all of the primary and secondary efficacy and safety endpoints for the study. The Phase IIa trial in kidney transplantation was completed in January 2003 with study results expected by the end of the second quarter.
Under the terms of the global collaboration agreement with Roche, Isotechnika could receive up to US$215 million in license fees, drug development and commercial milestone payments and equity investment. Roche is also responsible for 70% of the shared development costs of ISA247. Isotechnika will also receive predetermined tiered sales-based royalties at escalating rates upon commercialization of ISA247.
In Toronto Thursday, trading in Isotechnika's shares is halted. The stock last traded up 6 Canadian cents, or 2.2%, at C$2.80.
Company Web Site: isotechnika.com |
