NEWS-
Thursday February 13 7:30 AM EDT
Magainin Announces Cytolex Collaboration with
SmithKline Beecham in North America
PLYMOUTH MEETING, Pa., Feb. 13 /PRNewswire/ -- Magainin Pharmaceuticals Inc
today announced that it has entered into a development, supply and distribution
agreement in North America with Smithkline Beecham PLC ("SB") for Magainin's lead
development compound, Cytolex(TM) (MSI-78). Cytolex is a broad spectrum topical
antibiotic cream being clinically evaluated in the treatment of infection in diabetic foot
ulcers. Magainin announced successful completion of its initial Phase III clinical trial of
Cytolex in September, 1996, and expects to announce results of a second Phase III
clinical trial of Cytolex, in the same indication, in the first quarter of 1997.
The agreement provides for an upfront payment by SB to Magainin of $5 million. SB
may make additional payments to Magainin of up to $27.5 million for product
milestones, including an amount to be paid upon the successful completion of clinical
testing of Cytolex. SB will also fund a percentage of any development expenses for
additional indications for Cytolex. Upon the commencement of commercial sales by SB,
Magainin will be responsible for the supply of Cytolex, and will receive certain
percentages of SB sales revenues under agreed upon terms. The agreement also gives
SB the right to negotiate for rights to another Magainin product development candidate,
under certain terms and conditions.
"Cytolex is a promising innovation for physicians treating diabetic foot infections," said
Dr. Jerry Karabelas, Executive Vice President, SmithKline Beecham Pharmaceuticals.
"We look forward to working with Magainin and making Cytolex an important part of our
significant antibiotic franchise."
"We are delighted to enter into this strategic collaboration with SmithKline Beecham,"
said Jay Moorin, Chairman, President and Chief Executive Officer of Magainin.
"SmithKline Beecham's strong antibiotic franchise, as well as its established success in
marketing its topical antibiotic, Bactroban(R), are among the factors that make this
company a natural partner for Cytolex. With SmithKline Beecham managing sales and
marketing of Cytolex, we can devote our resources to advancing Magainin's research
pipeline, including our aminosterol compounds and our genomics discovery program for
asthma."
Magainin Pharmaceuticals Inc. is a biopharmaceutical company engaged in the
development of breakthrough medicines for serious diseases. The Company isolates
and develops compounds from the host-defense systems of animals and uses
molecular techniques such as gene identification to understand the pathogenesis of
disease. Magainin's development efforts are focused on anti-infectives, oncology and,
pulmonary and allergic disorders.
This announcement contains certain forward looking statements that are subject to risks
and uncertainties. Such statements reflect management's current views and are based
on certain assumptions. Actual results could differ materially from those currently
anticipated as a result of a number of factors, including, but not limited to, the risks and
uncertainties discussed under "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's Quarterly Report on Form 10-Q
for the quarter ended September 30, 1996 as filed with the Securities and Exchange
Commission and the following sections of Item 1 of the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 1995 as filed with the Securities and
Exchange Commission: "Synthesis Technology; Manufacturing;" "Product Development
and Research Programs;" "Government Regulation;" "Additional Regulatory Issues;"
"Patents and Proprietary Rights; Licensed Technology;" "Competition" and "Product
Liability and Insurance." The Company disclaims any intent or obligation to update
these forward looking statements.
Upon regulatory approvals, MSI-78 is expected to be marketed under the trade name
Cytolex(TM). SOURCE Magainin Pharmaceuticals Inc.
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