Inflazyme signs collaborative agreement with Hoechst Marion Roussel for development of asthma and allergy therapeutics PR Newswire - May 14, 1999 14:53 RICHMOND, BC, May 14 /CNW-PRN/ - Inflazyme Pharmaceuticals Ltd. (VSE: IZP) today announced the signing of a US$91 million collaborative agreement for the development of two novel series of compounds for the treatment of asthma and allergies with Hoechst Marion Roussel, the pharmaceutical company of Hoechst AG. The compounds are Inflazyme's IPL576 series and Hoechst Marion Roussel's H1/NK1 dual antagonists.
The collaboration will provide Inflazyme with an up-front fee and an equity investment by Hoechst Marion Roussel totaling up to US$16 million. In addition, Inflazyme will be entitled to payments totaling US$75 million if development milestones specified in the agreement are achieved. Inflazyme will also receive double-digit royalties on future sales of products developed under the agreement.
Today's announcement follows the companies' joint announcement of February 9, 1999 in which the two companies announced that they had entered into a binding letter of intent to form the collaboration.
Ian McBeath, President and CEO of Inflazyme said the partnership brings a number of significant benefits to Inflazyme. ''This agreement provides critical endorsement of our technology and provides the financial resources to carry our lead asthma compound forward into clinical development. In addition, we have added a new product to our development pipeline and will collaborate on research that could lead to further novel products for the treatment of inflammatory disease. We are pleased to be working closely with a major multinational partner who has a strong franchise in the respiratory area.''
Frank L. Douglas, Executive Vice President and Head of Drug Innovation & Approval for Hoechst Marion Roussel, said, ''Respiratory therapies are an ongoing area of strategic focus for Hoechst Marion Roussel. We are committed to working with Inflazyme to explore potential breakthroughs in that area.''
The equity investment vehicle will be preferred shares, which are convertible to common shares at Inflazyme's option any time after year one at a price based on the higher of the common share price at the time of subscription or conversion. The agreement gives Inflazyme
immediate access to cash for the development of IPL576 and H1/NK1, while minimizing dilution to the Company's common shareholders. Mr. McBeath noted that Inflazyme plans to exercise its rights to a portion of this equity in the near future.
Inflazyme expects to enter Phase I clinical trials with IPL576,092 in the United Kingdom before the end of June 1999. IPL576,092 is Inflazyme's lead clinical candidate from its IPL576 class of compounds. IPL576 is based on a molecule originally isolated from a sea sponge by researchers at the University of British Columbia and the University of Alberta. Pre-clinical studies have demonstrated that IPL576,092 may have the efficacy of inhaled glucocorticoids without the related side effects.
Hoechst Marion Roussel's H1/NK1 dual antagonists combine in a single molecule an antihistamine and a neuro-peptide inhibitor. In pre-clinical studies to date, H1/NK1 dual antagonist compounds have demonstrated antagonist activity at both the H1 and NK1 receptors, which indicates that they may have the potential to relieve both the itchiness and the congestion associated with allergies.
Under the terms of the partnership, Hoechst Marion Roussel can acquire worldwide rights(non-exclusive in Canada) for a compound from the IPL576 series for the treatment of asthma and other respiratory diseases. Inflazyme receives a license to develop oral and topical forms of Hoechst Marion Roussel's H1/NK1 dual antagonists as a treatment for allergies. Inflazyme will be responsible for the development of both through Phase IIa clinical trials.
After Phase IIa trials are completed, Hoechst Marion Roussel will have the option to acquire rights to an oral dosage form of a product developed from IPL576 and/or H1/NK1. HMR will then be responsible for further development and commercialization of the products. Inflazyme
will retain rights to any topical ocular formulation of H1/NK1 dual antagonists.
Under the agreement, Inflazyme will be free to develop additional IPL576 derived compoundsfor any inflammatory indication other than asthma or respiratory disease. Hoechst Marion Roussel will have the right of first refusal to license those additional products on commercial terms to be agreed upon.
In addition to the development agreement, Inflazyme and Hoechst Marion Roussel have agreed to collaborate on research into the mode of action and cellular targets for IPL576. The two companies will share ownership of joint discoveries from the research collaboration. |
