Alteon, Genentech Sign Pimagedine Development, Mkting
Pacts
RAMSEY, N.J. (Dow Jones)--Alteon Inc. (ALTN) entered agreements with
Genentech Inc. (GNE) to develop Pimagedine, a drug in phase III clinical trials
to treat kidney disease in diabetec patients.
In a press release Thursday, Genentech said it will buy $15 million of Alteon
common and preferred stock.
After that, Genentech said it will fund development costs for Pimagedine by
investing up to $48 million in Alteon's preferred shares, paying $16 million
initially in January, with future investments following.
Alteon granted Genentech worldwide exclusive license rights to Pimagedine,
except in Japan, China, South Korea, Taiwan, Israel, Jordan, Bulgaria, Cyprus
and South Africa. Those countries are covered under previous Alteon
agreements.
Alteon also gave Genentech exclusive license rights to second-generation
compounds in the same class, including future Alteon products. Genentech will
pay development costs for those compounds and give Alteon $50 million in
milestone payments relating to U.S. and European regulatory filings and
approvals, as well as royalties on sales.
Under the agreements, all U.S. development activities will be jointly managed
by an Alteon/Genentech steering committee. Genentech will advise Alteon on
international development issues and on marketing the products in the licensed
countries.
Genentech develops drugs and Alteon specializes in drugs to treat diabetes
and age-related disease. |
