Roche and Maxygen Establish Broad Alliance to Develop and Commercialize Next-Generation Interferon Alpha and Beta Products
BASEL, Switzerland and REDWOOD CITY, Calif., May 22 /PRNewswire-FirstCall/ -- Roche and Maxygen, Inc. (Nasdaq: MAXY - News) announced today that they have formed a broad strategic alliance to collaborate on the global development and commercialization of Maxygen's portfolio of next-generation interferon alpha and beta variants for a wide range of indications.
The collaboration will initially focus on the development of lead candidates for hepatitis B virus (HBV) and hepatitis C virus (HCV) that have been designed by Maxygen to have novel and superior efficacy compared to currently marketed interferon alpha products. This builds on Roche's commitment to hepatitis, following Pegasys, a new generation interferon that provides significant benefit over conventional interferon therapy in patients infected with HCV.
Terms of the Agreement
Roche has licensed worldwide commercialization rights to specific novel interferon product candidates for HBV and HCV. Maxygen will receive an initial payment, full research and development funding for the first two years of the collaboration and option fees. In addition, Maxygen is eligible to receive milestone payments and royalties based on product sales.
The agreement also provides the companies with the option to expand the collaboration to develop other novel interferon alpha and beta products specifically tailored for indications outside of HBV and HCV, including oncology, autoimmune diseases, inflammatory diseases, and other infectious diseases such as HIV. Maxygen retains the right to develop such products while Roche may elect to acquire worldwide license and commercialization rights to these product candidates.
Maxygen has the option to co-develop in the United States any product to which Roche acquires a license in exchange for profit sharing or an increased royalty rate.
Based on the continued successful development of the novel interferon product candidates and the satisfaction of certain contingencies, payments to Maxygen could exceed $230 million plus royalties on product sales.
"Roche has a long tradition in successfully developing and commercializing anti-viral drugs, alone or in partnership with other companies. We believe with Pegasys and Copegus we are establishing a new standard of care. Maxygen's portfolio of lead interferon product candidates represents an interesting and novel approach for further improvement in treatment. We are convinced that through our collaboration we will continue to be a clear leader in the treatment of patients suffering from this debilitating disease," said William M. Burns, Head of Roche's Pharmaceuticals Division.
"Maxygen's strategy has always been to partner with world leaders in their respective fields, and with its track record of excellence and an established and strong franchise, Roche is clearly a leader in the development and commercialization of interferon therapies," said Russell Howard, Ph.D., Chief Executive Officer of Maxygen. "This innovative collaboration is structured to maximize the commercial potential of Maxygen's novel shuffled interferons by enabling their swift development and potential commercialization with a market leader in hepatitis. Importantly, Maxygen retains the right to conduct further discovery and development of novel interferons for additional indications. I am particularly excited about Maxygen's option to co-develop these products for hepatitis B and C in the U.S., as this provides substantial potential for long-term value creation for the company." |
