Pharmaceutical/Biotechnology Deals from Elsevier Business Intelligence

[Oxford BioMedica] speeds to disappointing IPO

Sun, 01 Dec 1996 00:00:00 -0500

Since underwriters failed to place all their shares, the new biotech [Oxford BioMedica] (gene therapy) netted only $7.35mm (UK4.4mm), rather than the $16.8mm it hoped for, in its IPO on London's AIM exchange for emerging companies. The company skipped the usual sequence of venture financing rounds and went straight to the public market OBM was set up to develop technology invented by Alan and Susan Kingsman (CEO and research director) at [Oxford U.], commenced operations only this year, raising seed funding in September. The company planned to spend the proceeds on laboratories, equipment, and facilities and to go forward with candidate product development. OBM owns 10 patent applications, stemming from the Kingsmans' research, for retroviruses, targeting vectors, and a therapeutic gene; and it plans to negotiate additional technology licenses from the university. Its target diseases: several cancers, HIV; cystic fibrosis; and Parkinson's.

[DiagnoCure] nets $11.8mm in Canadian IPO

Fri, 01 Nov 1996 00:00:00 -0400

[DiagnoCure] (cancer diagnostics and therapeutics company) completed its initial public offering, selling 4.02mm units consisting of one common share and one warrant to purchase one common share, at $2.96 (Cdn$4) each, and netting $11.8mm (Cdn$16mm). The company will use the proceeds to fund R&D and acquire complementary technologies, and for general corporate purposes. It was incorporated in 1994 to develop diagnostic and therapeutic products for genito-urinary and breast cancers. Thecompany's lead products are based on monoclonal antibodies discovered by Dr. Yves Fradet of the [Universite Laval], and licensed from that institution. DiagnoCure hopes to launch {ImmunoCyt}-1,a fluorescence-based immunocytological test for superficial bladder cancer, by the second quarter of 1997, and it has several cancer therapeutic products in development as well.

[Nextran] and [Cytel] in xenotransplant collaboration

Tue, 01 Oct 1996 00:00:00 -0400

[Baxter Healthcare]'s [Nextran] (organ transplant technology) division will collaborate with [Cytel] (immunotherapeutics) to develop a carbohydrate column for xenotransplantation (animal organs transplanted into humans). Nextran funding will consist of an upfront payment including an equity investment and milestones. Cytel will exclusively supply its enzymatic sugar nucleotide cycling technology (SNC) (permits mass production of bioactive carbohydrates) for Nextran to incorporate into its xenotransplant product; a column that filters the organ recipient's blood to remove carbohydrate-attacking antibodies that would cause organ rejection.

[Boehringer Mannheim] markets [Recombinant BioCatalysis] enzymes

Tue, 01 Oct 1996 00:00:00 -0400

[Corange]'s [Boehringer Mannheim] has signed a worldwide marketing agreement to non-exclusively market certain enzymes supplied by [Recombinant BioCatalysis] (enzyme discovery) to produce biocatalysts for use in synthesizing compounds. Recombinant, founded in 1994, discovers enzymes capable of withstanding extreme conditions. It also generates gene libraries and performs high-throughput enzyme clone screening. These enzymes broaden BM's existing portfolio, to enable discovery of enzymes for pharmaceutical, food products, agrochemical and various other chemical applications, and identification of unique enzymes that could increase manufacturing capabilities, leading to a reduction in costs, handling and disposal of byproducts.

[BMS] collaborates with [Pharma Mar] on anti-cancer drugs

Tue, 01 Oct 1996 00:00:00 -0400

[Bristol-Myers Squibb] has the option to an exclusive worldwide license from [Pharma Mar] (marine-derived anti-cancer drugs) for the continued development of 12 cancer therapeutics from Pharma Mar's portfolio of marine organisms. Pharma Mar collects & screens (using a range of human cancer cell lines) non-vertebrate marine micro-organisms to develop AIDS and anti-cancer drugs. Marine organisms display a diversity of life forms because of the harsher environment they've endured. They appear to have a greater potency than land-based sources. Pharma Mar has more than 350 compounds in its portfolio with 100 compounds proven {in vitro} to have anti-cancer properties.

[American Biogenetic Sciences] raises $9mm in private placement

Tue, 01 Oct 1996 00:00:00 -0400

Publicly-held [American Biogenetic Sciences] completed a $9mm private placement of convertible debentures. The offering raises ABS's cash and marketable securities on hand to about $16mm. The company will use the proceeds for general capital purposes, including clinical and diagnostic testing, sales and marketing, R&D and to purchase new equipment. ABS's core technology includes a patented antigen-free system that allows the generation of highly-specific monoclonal antibodies that are unattainable by present technologies. ABS has alliances with [Abbott], [Hoffmann-La Roche] and the [Medical Research Council] of Great Britain.

[Oncogene Science] buys UK discovery firm [Aston]

Sun, 01 Sep 1996 00:00:00 -0400

NY biotech [Oncogene Science] has acquired all the shares of [Aston Molecules Ltd.] (drug discovery and development services firm in Birmingham, UK] for 284,000 shares of OSI common stock (worth about $2.6mm). The shares represent about 1% of OSI's outstanding stock. The technologies in combinatorial chemistry that Aston has been developing will allow OSI to optimize lead compounds that it discovers in-house through its live-cell based screeningsystems. A chemistry team at Aston will generate small molecule libraries for use in screening and in lead optimization. OSI works in drug discovery and development for diseases associated with abnormalities of cellular control, such as cancers and atherosclerosis. The two companies have been partners for over two years in medicinal chemistry projects, including the search for drugs effective against leukemia. Aston will be OSI's wholly owned subsidiary and will continue to operate in Birmingham under its existing management; it will still sell services outside medicinal chemistry to other companies.

[Novo Nordisk] licenses [Scios]' insulinotropin

Sun, 01 Sep 1996 00:00:00 -0400

[Novo Nordisk] (insulin and diabetes treatments) exercised an option, acquired in July and due for expiration in the fall, to exclusively license [Scios]' (therapeutics for acute illnesses) insulinotropin hormone peptide. The product had been licensed to [Pfizer], but Pfizer recently terminated the agreement, returning to Scios all rights and technologies related to insulinotropin, currently in Phase II trials. Novo will get exclusive worldwide rights in return for an upfront payment, calendar-based and developmental milestones, and royalties on sales. Insulinotropin stimulates insulin release in response to increases in blood sugar levels, allowing for more precise blood sugar regulation. This control can reduce the risk of hypoglycemia in Type II diabetes.

[Triangle] options rights to [Univ. California] cancer drug

Sun, 01 Sep 1996 00:00:00 -0400

[Triangle Pharmaceuticals] (antivirals) optioned rights from the Regents of the [University of California] to alanosine and related technologies in treating certain types of cancer. The option expires Sept. 1, 1998. Triangle paid the Regents an option fee, and if it exercises its option, will pay an initial license fee and an annual license maintenance fee, along with milestones and sales royalties; the royalty payments include an annual minimum.The company would receive exclusive worldwide rights to the drug for treating cancers that lack the enzyme methylthioadenosine phosphorylase (MTAP), required in one of two different ways cells make adenosine (alanosine interferes with the synthesis of adenosine). The partners also entered into a sponsored research agreement with Triangle providing $450,000 to fund two Phase II trials at UC San Diego to measure alanosine's efficacy in treating non-small cell lung cancer and brain cancer.

[Houghten] licenses combinatorial technology from [Torrey Pines]

Sun, 01 Sep 1996 00:00:00 -0400

[Houghten Pharmaceuticals] (combinatorial chemistry) exclusively licensed a technology used to identify highly active compounds in combinatorial libraries from the [Torrey Pines Institute]. The technology, known as {PositionalScan}, was invented by Drs. Richard Houghten, Clemencia Pinilla and Jon Appel, and is covered by an 8/96 issued patent. The technology is essentially a combinatorial screening method used to rapidly isolate the most useful chemical structure in a library of related compounds. Most types of compound libraries are created combinatorially, but screened serially, or one-by-one, against targets. Houghten Pharmaceuticals has first right of refusal to all discoveries made at Torrey Pines, an independent non-profit research institute founded in 1988 by Dr. Houghten, also the founder of the company.

[Cytoclonal] licenses [University of Texas] antisense technology.

Sun, 01 Sep 1996 00:00:00 -0400

[Cytoclonal Pharmaceutics] exclusively licensed worldwide rights to a filed patent covering a technology for effectively targeting antisense molecules from the [University of Texas] at Dallas. Developed by UT's Dr. Donald Gray under a 6/94 sponsored research agreement, the technology is an algorithm for identifying the optimum regions within genes to bind antisense products. Therapeutic antisense products are designed to bind directly to, and alter the expression of genes involved in diseases such as cancer and AIDS. Using the UT technology, Cytoclonal believes it can improve the binding specificity and stability of antisense targeted against a given gene. Through the ongoing collaboration with UT, Cytoclonal plans to build and sell a library of optimized antisense reagents for a variety of disease genes.

[Antisoma] and [Imperial Cancer Research Fund] form cancer JV

Sun, 01 Sep 1996 00:00:00 -0400

[Antisoma] (cancer diagnostics and therapies) and [Imperial Cancer Research Technology], the development arm of the [Imperial Cancer Research Fund], have formed [Cancer Therapeutics Ltd.] to develop anti-cancer products. The joint venture will identify, develop, and market tumor targeting antibodies. Both London-based companies have already contributed several antibodies to the venture including {Theragyn}, Antisoma's lead product for treating ovarian cancer, currently in Phase III trials. Antisoma will fund the JV and supply all clinical development, regulatory and marketing support. The ICRT will supply lab facilities to the JV, which gets rights to license other targeting antibodies developed by the ICRF.

[Texas Biotechnology] buys 10% of [Structural Bioinformatics]

Sun, 01 Sep 1996 00:00:00 -0400

[Texas Biotechnology] (cardiovascular therapeutics) took a 10% equity position in [Structural Bioinformatics Inc.], a San Diego-based start-up that uses software to convert gene sequences into three-dimensional protein structures. Texas Biotech also granted SBI certain computational design patent claims, and gets access for three years to SBI's protein database libraries, with an option to maintain access after three years at highly favorable terms. SBI, founded in March 1996, uses high-speed algorithms to convert gene sequence data into 3-D protein drug targets and locate surface features that show promise as sites for small molecule drugs. The company's strategy is to license out access to its database and library of proteins in a manner similar to Incyte's. Its president is Edward Maggio, PhD, who also founded two other biotech companies: [Synbiotics] and [ImmunoPharmaceutics], which was purchased by TBC in 1994.

[Schering-Plough] gets rights to [Sequus]' {Caelyx}; later ends

Sun, 01 Sep 1996 00:00:00 -0400

[Schering-Plough] licensed exclusive worldwide marketing and development rights outside of the US, Japan, and several small markets to [Sequus]' (liposomes) oncology drug {Caelyx} (pegylated liposomal doxorubicin HCl). Sequus will receive (uf)$5.3mm up front and could receive up to $27mm in milestones; it also retains manufacturing rights. {Caelyx}, which is marketed in US as {Doxil} and approved as treatment for Kaposi's sarcoma in AIDS patients, has received European Union approval, and SP expects to begin marketing there shortly. The drug is a {Stealth} liposome formulation of the anti-cancer drug doxorubicin. The two companies will also begin separate development efforts on two different solid tumor indications, SP conducting trials and handling regulatory approvals in its territories for its indication.

[Ethical] to develop sustained-release CV drug for [Towa]

Sun, 01 Sep 1996 00:00:00 -0400

[Towa Pharmaceutical] (Japanese generics company) signed a development and license agreement giving it exclusive rights in Japan and some other SE Asian territories to an oral cardiovascular drug to incorporate [Ethical]'s {Multipor} delivery system. Ethical has already had the sustained-release product in feasibility studies for Towa since last year. Towa develops generic prescription drugs in-house, as well as licensing from other companies; it has a particular specialty in cardiovascular medicines.

[Roche] licenses [Gilead]'s influenza candidates

Sun, 01 Sep 1996 00:00:00 -0400

[Hoffmann-La Roche] has licensed the exclusive, worldwide rights to [Gilead Sciences]' neuraminidase inhibitors for the treatment of viral influenza, including GS-4104, in exchange for up to $50mm in upfront and milestone payments to Gilead. Roche paid (uf)$10.3mm upfront and may pay up to $40mm in milestones. It will handle all R&D costs (GS-4104, the lead neuraminidase inhibitor, has completed preclinical studies) and pay sales royalties. Gilead will be responsible for US trials, while Roche handles trials elsewhere. Additionally, Gilead gets US co-promotion rights for 3-yrs to Roche's {Roferon-A} (interferon alfa-2a), a hepa C treatment awaiting FDA approval. Gilead's rights will be limited to the hep C indication (Roche markets it for cancer), and it will receive a percentage of net sales plus a residual payment following the 3-yr term.

[GenVec] licenses herpes simplex virus technology from [BTG USA]

Sun, 01 Sep 1996 00:00:00 -0400

[GenVec] ({in vivo} gene therapy) licensed exclusive worldwide rights to [BTG PLC]'s herpes simplex virus technology to develop gene delivery systems for treating Parkinson's disease and other neurological disorders. GenVec of Rockville, MD will run clinical trials and receives exclusive rights to any products resulting from research conducted by technology developer, Dr. Chris Preston of Glasglow's [Medical Research Council] Virology Laboratory. The H-based vector, modified so that the virus can not replicate, is a successful gene delivery vehicle because it is able to enter the central nervous system and endure there.

[Bristol-Myers Squibb] gets beraprost from [HMR], [Toray]

Sun, 01 Sep 1996 00:00:00 -0400

[Bristol-Myers Squibb] has licensed from [Hoechst Marion Roussel] and [Toray Industries] (Japan) the US and Canadian rights to develop and market beraprost, which treats vascular diseases, including peripheral arterial disease (PAD). Beraprost, now in Phase II in the US and Phase III in Europe, was discovered by Toray and licensed to [Marion Merrell Dow], now a division of [Hoechst Marion Roussel]. MMD was required by the FTC to divest beraprost when it was acquired by Hoechst in 1995. A major symptom of PAD, intermittent claudication (caused by lack of blood flow), can lead to significant physical debilitation including weakness and pain in the legs.

[Elan], [Cytogen] end cancer JV: [Targon Corp.]

Sun, 01 Sep 1996 00:00:00 -0400

[Elan] and [Cytogen] have combined their oncology programs into a joint venture, [Targon Corp.], which will be initially capitalized with $20mm. Elan bought $5mm worth of Cytogen common and $15mm in Series A preferred shares (convertible at Elan's option into Cytogen common at an exercise price ranging from $8.40-14 per share for a maximum of 1,785,715 shares, or half ownership of Targon). Targon gets rights to Elan's EL-530 and EL-532 (Phase II for solid tumors), and Cytogen's {ProstaTec} (second generation version of {ProtaScint},-under FDA review for the location of prostate tumor); {OncoTec}, an imaging agent for breast cancer; and Cytogen's PSMA technology for detection of prostate cancer in the blood.

[P&U] to pay [Biogen] $30mm in settlement

Sun, 01 Sep 1996 00:00:00 -0400

To settle a patent dispute, [Pharmacia & Upjohn] will pay [Biogen Technologies] $30mm in royalties plus a percentage of future North American and Japanese sales of {Genotropin}, its recombinant growth hormone product. Biogen had filed a complaint claiming P&U's {Genotropin} infringed its protein secretion technology patent that it licensed from [Harvard University]. Biogen has dropped its suit as a result of this agreement. Biogen develops and tests drugs for inflammatory, neurological, and respiratory diseases.

[Allelix]'s [Base4], [Mt. Sinai Toronto] in bioinformatics deal

Sun, 01 Sep 1996 00:00:00 -0400

[Allelix]'s new subsidiary [Base4 Bioinformatics] agreed to supply, for two years, its advanced computer technology to search for new genes and understand their role in diseases to [Mount Sinai Hospital of Toronto]'s [Samuel Lunenfeld Institute]. Base4 has created multiple nodes of operation to maximize and protect its high powered bioinformatics technology and to distribute to several medical research centers. Mt. Sinai's Institute, which focuses on molecular biology and the genetic basis of disease, is Base4's first deal. Base4 will work directly with researchers at the Institute, dedicating approximately 20% of their time, providing technical support during the two-year agreement. The objective: to model 3-D proteins from linear DNA sequences. In return, Base4 gets rights to any leads resulting from the collaboration.

[Aurora] to use [ArQule]'s {Mapping Array} in drug discovery deal

Sun, 01 Sep 1996 00:00:00 -0400

[Aurora Biosciences] (screening technology) will use [ArQule]'s {Mapping Array} sets of small molecule compounds to discover new drug leads. The companies will jointly develop any successful hits identified in Aurora's screens and share ownership rights and revenues equally. There is no upfront money or equity involved in the deal. Aurora develops automated systems for ultra-high-throughput screening based on fluorescence-based assays. ArQule uses two types of arrays to help develop its combinatorial chemistry libraries. Its {Mapping Array} compound sets, which will be used in this collaboration, are novel, diverse small-molecule compounds and its {Directed Array} compound sets are arrays of analogues of a particular lead compound.

[Chiron] will use [GI]'s discovery platform for secreted proteins

Sun, 01 Sep 1996 00:00:00 -0400

[Genetics Institute] is launching its {DiscoverEase} drug discovery platform, which quickly isolates gene-secreted proteins and determines their functions in human tissues. [Chiron] is one of its two initial licensees ([Genentech] is signing up now too). GI is trying to distinguish itself among the other gene sequencing companies in two ways. First, its technology culls from the 100,000 human genes, the subset that is most likely to lead to drugs, since genes that trigger production of secreted proteins (those that leave the cell) are more likely to have therapeutic applications. Second, GI plans to enroll multiple partners at low up-front fees. Licensees will pick individual proteins from the library (first-come, first-serve) and get exclusive rights to them; the payoff to GI comes from an option to co-develop and co-commercialize the resulting candidates.

[Genentech] will use [GI]'s {DiscoverEase} genomics data

Sun, 01 Sep 1996 00:00:00 -0400

[Genentech] signed as a charter partner as [Genetics Institute] begins outlicensing use of its {DiscoverEase} functional genomics discovery system, which offers a library of human proteins, full length genes, a relational database, and technical support. With these and future clients, GI will charge a low access fee but will take value later on by retaining co-development and co-commercialization rights. {DiscoverEase} is based on a patented technology, the {Signal Sequence Trap}, which identifies only those genes (a fraction of the human genome) that instruct cells to produce proteins, molecules that mediate both internal cell functions and cell-to-cell interactions. Existing drugs from secreted proteins include insulin, interferon, and erythropoietin. Genentech will claim specific proteins from the library to license exclusively. GI also signed a similar deal with [Chiron].

[Advanced Biological] to market [Biopharmaceutics]' cancer drug

Sun, 01 Sep 1996 00:00:00 -0400

[Advanced Biological Systems] (invests in technology and pharmaceuticals) will commit about $3.75mm in an alliance to commercialize [Biopharmaceutics]' (branded and generic pharmaceuticals) {Mitolactol} cancer drug. ABS will pay Biopharmaceutics $2.75mm in cash and stock for rights to market the product. Payment comprises 425,000 shares of ABS common stock (about (uf)$1.1mm), plus $150,000 in cash before 10/31/96. The remainder will be paid upon successful IND filings and approval of {Mitolactol}, which is currently in Phase III trials. ABS will also pay $1mm to cover all costs associated with the final development and regulatory approval of the drug. Biopharmaceutics gets 60% of the profits that may be generated until it has received a minimum of $2mm. Thereafter, the profits will be split 55% for Biopharmaceutics and 45% for ABS.

[Carl Zeiss] makes equity investment in [BioDx]

Sun, 01 Sep 1996 00:00:00 -0400

The American subsidiary of [Carl Zeiss], [Zeiss Optical Systems] (diagnostic optical screening instruments) has made an equity investment in [BioDx] (formerly Biological Detection- biodetection software) as part of an existing collaboration. The alliance employs Zeiss' optical and mechanical technologies and BioDx's fluorescence detection and informatics tools. The first product resulting from this collaboration is {Arrayscan}, an automated cell-screening system that uses fluorescent probes in high-precision and high-throughput systems for cell-based drug discovery.

[SuperGen] gets NA rights to [Warner-Lambert]'s {Nipent}

Sun, 01 Sep 1996 00:00:00 -0400

[SuperGen] (generic cancer and blood cell drugs) licensed exclusive marketing rights in the US, Canada, and Mexico to [Warner-Lambert]'s {Nipent} (pentostatin), for a combination of cash and SuperGen equity (equity purchase is below one percent). The agreement also gives SuperGen W-L's drug inventory, the trademarks, patents and data relating to manufacture of the product; the US NDA; the he Canadian New Drug Submission; and certain clinical studies.Pentostatin marketed in the US for hairy cell leukemia; it has orphan drug status for that indication and for chronic lymphocytic leukemia. In addition to these cancer indications, the drug is in Phase II trials to treat rheumatoid arthritis. SuperGen now has four drugs that it markets to oncologists; for the other three, it licensed nonexclusive US rights from [Barr Laboratories] in July. [NOTES:] SuperGen's 10K for 1997 reports terms: it paid $2mm cash and $1mm in unregistered restricted shares of common stock (72k shares). Furthermore, SuperGen paid W-L an additional $500k in cash in December 1997 upon the FDA's approval of its supplemental NDA.

[Beaufour-Ipsen] gets [Neurex]'{Corlopam} in Europe & Far East

Sun, 01 Sep 1996 00:00:00 -0400

[Neurex] (products for cardiorenal disease) will license marketing rights in Europe and the Far East (excluding Japan) to intravenous and alternate forms of its {Corlopam} (fenoldopam) to French pharmaceutical company [Beaufour-Ipsen]. [Neurex] could get licensing fees and milestones up to $7.5mm, will receive royalties from future sales and will retain manufacturing rights. Neurex licensed {Corlopam}, a treatment for malignant hypertension, congestive heart failure and acute renal failure, from [SmithKline Beecham] in 1994. Beaufour-Ipsen develops and sells oncology, intensive care and cardiovascular products to European and Far East hospital markets.

[BioTransplant] uses [Activated Cell Therapy]'s stem cell device

Sun, 01 Sep 1996 00:00:00 -0400

[BioTransplant] (anti-rejection drugs and organ transplant systems) acquired exclusive worldwide rights, in the field of organ transplantation, to use [Activated Cell Therapy]'s bone marrow stem cell isolation device. BT will use ACT's bone marrow purification devices to process and isolate human and porcine bone marrow cells for its {AlloMune} system, for human-to-human solid organ transplantation, and {XenoMune} system, for pig-to-human organ transplantation. The systems promote transplant tolerance by re-educating the recipient's immune system to accept the donor organ. ACT's device recently received FDA approval.

[Axiom] in drug discovery deal with Japanese biotech [Zaiya]

Sun, 01 Sep 1996 00:00:00 -0400

In a three-year research collaboration, [Axiom Biotechnologies] (biotech start-up) will apply its cell-based screening technology to [Zaiya]'s (2-year old Japanese biotech) genetic targets for treating allergies, asthma, and inflammation. Axiom gets research funding, milestone payments and royalties on any marketed products. In return, Zaiya gets exclusive worldwide rights to all lead drug candidates that result from the collaboration. The agreement will focus on CD40, a B cell surface receptor, which activates intracellular signaling proteins that cause B cells to produce immunoglobulin E, of which elevated levels in the blood have been linked to asthma, allergies and other inflammatory diseases. Axiom will develop small-molecule compounds that enter B cells and block the signaling proteins, preventing immunoglobulin production.

[ArQule] & [Roche Bioscience] to discover and develop new drugs

Sun, 01 Sep 1996 00:00:00 -0400

[ArQule] will apply its molecular building block technologies in a three-year collaboration with [Roche Bioscience] (R&D, ethical drugs) to discover and speed development of new therapeutics. ArQule will synthesize {Directed Arrays}, or custom libraries of analogues of a particular compound, based on lead compounds provided by Roche. Absent early termination, ArQule will get $12.1mm in guaranteed research funding over theperiod and research and clinical milestone payments that could bring the total to $50mm. Roche will pay royalties on any drugs developed from the collaboration.

[Mallinckrodt] & [Metasyn] to R&D MRI agent

Sun, 01 Sep 1996 00:00:00 -0400

The [Mallinckrodt Group] (MKG) licensed from [Metasyn] (noninvasive cardiovascular and neurological diagnostics) exclusive rights for its MRI agent MS-325. MKG pays a (uf)$6mm license fee up front and gets exclusive rights excluding Japan (recently licensed to [Daiichi Radioisotope]), to MS-325 and other MRI vascular agents. Both will share in product development by contributing assets, and sharing R&D and clinical trials costs and resulting profits. MS-325, now in Phase I US trials, is an injectable agent for MRI imaging of the cardiovascular system, and is an alternative to catheter-based x-ray angiography.

[LeukoSite] and [Oxford Asymmetry] R&D inflammatory bowel disease

Sun, 01 Sep 1996 00:00:00 -0400

[LeukoSite] has identified a lymphocyte binding site and [Oxford Asymmetry] will combinatorially synthesize small molecules for that receptor, in a collaboration to find candidates for the treatment of inflammatory bowel disease (IBD). LeukoSite has a model of IBD that demonstrates that blocking the Alpha 4-Beta 7 integrin receptor on lymphocytes to MAdCAM-1 (an adhesion receptor on the cells of blood vessels lining the intestine) can prevent lymphocyte infiltration andlessen symptoms of IBD. Oxford will use its combinatorial chemistry program to synthesize molecules to block this receptor. LeukoSite will test these candidates using high throughput screening to identify optimal leads and undertake development thereafter. Oxford will receive partial research funding, milestone payments and royalties, LeukoSite retains worldwide rights.

[ArQule] & [Sugen] find compounds to inhibit signal transduction

Sun, 01 Sep 1996 00:00:00 -0400

[ArQule] will use its {Mapping Array} combinatorial synthesis technology to develop compounds which inhibit signal transduction using lead structures provided by [Sugen]. Sugen will have exclusive rights to compounds for tyrosine kinase and serine-threonine kinase targets, and ArQule will get rights to commercialize compounds targeting other areas. The companies will pay each other royalties on any products developed.

[Roche] licenses [Oxford Molecular]'s discovery software

Sun, 01 Sep 1996 00:00:00 -0400

[Oxford Molecular Group] (drug discovery and design software) licensed [Hoffman-La Roche] the use of its {RS3 Discovery}, an {Oracle}-based program that adds the capabilities of a chemical structure search engine to Roche's existing relational database. {RS3 Discovery} treats chemical information just like any other piece of data, so Roche will be able to integrate it with its corporate data, such as results of high-throughput biological assays, or compound registration, in the same {Oracle framework. {RS3 Discovery} in combination with the {Chemical Screening and Analysis Package} (made by [MLR Automation]; handles lab functions such as plate management, scheduling, and data processing from plate readers) can manage data throughout the entire drug discovery process. OMG simultaneously announced a similar agreement with [Abbott]'s pharmaceutical discovery division.

[Genzyme Tissue Repair] and [Diacrin] form 50/50 joint venture

Sun, 01 Sep 1996 00:00:00 -0400

[Genzyme]'s [Tissue Repair Division] and [Diacrin] (developing porcine cells to treat humans) formed a 50/50 joint venture to develop two of Diacrin's products to treat neurological disorders. Genzyme will provide the first $10mm in funding; 75% of the next $40mm, and then the costs will be split 50/50.The joint venture will manufacture the products, and Genzyme will market them on a cost-reimbursement basis. The companies will share profits equally. The products, {NeuroCell PD}, a treatment for Parkinson's and {NeuroCell HD} (Huntington's) are in Phase I trials, and involve transplanting fetal porcine cells into human brains. Diacrin said its animal studies showed that the transplanted cells successfully integrated into the host's tissue and restored damaged neural circuitry.

[Roche] licenses neuronal cell technology from [Signal]

Sun, 01 Sep 1996 00:00:00 -0400

[Roche Bioscience] and [Signal Pharmaceuticals] entered into a three-year agreement under which Signal will use its neuronal cell line technology to develop targets for Roche in the areas of neuroscience, particularly pain and urinary tract disorders. Roche will provide research funding, make milestone payments, pay a license fee and royalties on sales in exchange for worldwide exclusive marketing and manufacturing rights to compounds emanating from the partnership.

[BioCryst] nets $21.6mm in follow-on of 2.3mm common shares

Sun, 01 Sep 1996 00:00:00 -0400

[BioCryst Pharmaceuticals] (structure-based drug design) completed a follow-on offering of 2.3mm common shares at $10 each,including the underwriter's overallotment, raising net proceeds of $21.6mm. The company is designing novel small molecule drugs to closely fit the active site of each target protein. Three of its programs, all based on its purine nucleoside phosphorylase (PNP) inhibitor {BCX-34}, have advanced to the clinical testing stage. These are treatments for cutaneous T-cell lymphoma (topical formulation in Phase III and oral in Phase I/II); atopic dermatitis (Phase I/II); and psoriasis (topical-Phase III and oral- Phase I/II). BioCryst's strategy is to provethat blocking PNP inhibits T-cell proliferation, then use the information from development of the topical formulation as foundation for systemic drugs to address additional indications that can similarly be controlled via immune mechanism inhibition.

[Structural Bioinformatics] raises $2.5mm in first round

Sun, 01 Sep 1996 00:00:00 -0400

[Structural Bioinformatics Inc.], a San Diego-based start-up which is developing software to convert gene sequences into three-dimensional protein structures, raised $2.5mm in its first round. Both US and European investors participated, and the company expects more funding by mid-October from oversubscriptions. SBI's technology uses high-speed algorithms to convert gene sequence data into 3-D protein drug targets and then locatesurface features that show promise as sites for small molecule drugs. It recently signed a deal with [Texas Biotechnology Corp.], where TBC took a 10% equity stake in exchange for access to SBI's database.

[Triangle] nets $41.1mm in 4.5mm share IPO

Sun, 01 Sep 1996 00:00:00 -0400

[Triangle Pharmaceuticals] (1995 start-up, developing antivirals and anticancer drugs) completed its initial public offering of 4.5mm common shares, including the overallotment, netting $41.1mm. The company will use the proceeds to fund its drug development programs, for general corporate purposes and as working capital. Although little more than a year old, Triangle has on its side the reputation of its founding executives, DavidBarry, M. Nixon Ellis and Phillip Furman; all were formerly at Wellcome and involved in that company's successful AIDS drug AZT. Triangle's current portfolio includes five licensed drugs, and options on two others; four are anti virals that show promise against HIV (and two also against hepatitis B); and the other three are anticancer, herpes, or psoriasis treatments.

[Receptagen] announces private placement

Sun, 01 Sep 1996 00:00:00 -0400

[Pharmaceutical Consultants and Investments] has cancelled its two-tranche private placement totaling $19.9mm(Cdn$27.32mm; 30.94mm shares at Cdn$0.883 per share) to [Receptagen Ltd.] (treatments for cancer and proliferative cell disorders). The first phase, an immediate cash injection, consists of Cdn$5mm in debentures that will automatically convert to common shares once shareholders approve the financing; the remaining Cdn$22.32mm will be a common share placement. Receptagen will use the funds to expand its drug distribution division, spin off its drug development subsidiaries, advance its {Growth Blocker} drug (destroys cancer cells), and perform clinical testing of {Coenzyme Q10} (treatment forAIDS symptoms) products.

[CDR Therapeutics] raises $6mm in seed round

Sun, 01 Sep 1996 00:00:00 -0400

[CDR Therapeutics], a Seattle start-up focusing on small molecules that mimic monoclonal antibodies, has raised $6mm in its seed round of venture capital funding. Participants in the round included the Sprout Group, Alta Partners, Sofinnova, and Arch Partners; Phillipe Chambon, MD, PhD and Jean Deleage of Alta Partners will join CDR's board of directors. CDR exclusively licensed the small molecule technology from the [University of Pennsylvania School of Medicine], where it was developed by a team led by Mark Greene, MD, PhD, with the assistance of researchers from the [Wistar Institute] and [Colorado State University].

[Xenova] forms US subsidiary, [MetaXen]

Sun, 01 Sep 1996 00:00:00 -0400

[Xenova] and three individual founders provided $1mm in capitalization to form a new drug discovery company called [MetaXen]. Xenova will keep a majority ownership in the company and provide additional funding in the future. In September 2000, based on milestones, MetaXen shareholders will be able to trade their shares and options for shares and options of Xenova stock. The California-based MetaXen will expand Xenova's early drug discovery leads, establish a structure-based drug design group and an {in vitro} metabolism drug group to create high-throughput assays, and groups to apply genomics and bioinformatics to identify new drug targets.

First venture round by gene expression company [Pharmagene]

Sun, 01 Sep 1996 00:00:00 -0400

UK biotech start-up [Pharmagene] raised $2.18mm ( 1.4mm) in its first financing round. The company is studying the expression and function of genes and their products in human tissues. Initial investors are 3i, Abacus Nominees, and the company's two founders, Gordon Smith-Baxter and Robert Coleman, who came from SmithKline Beecham and Glaxo Wellcome. Pharmagene gets the human material for its research from tissues that would otherwise be destroyed: unused donated organs and tissues removed in surgery. The company is generating revenues by doing contract research, providing several drug companies with preclinical data for use in drug discovery. Its databaseof human gene function in health and disease states is called {LifeBase}.

[Seragen] raises $5mm in private placement

Sun, 01 Sep 1996 00:00:00 -0400

Publicly-traded [Seragen] (cancer and dermatology drugs) raised $5mm in a private placement of 5,000 shares of Series C convertible preferred stock. The stock is convertible to common at the holder's option at the lesser of Seragen's closing price on Sept. 27, 1996 or 73% of the close for five days prior to the conversion date. This is Seragen's second private placement this year; it raised $3.8mm in a similar placement last June.

[Medicis Pharmaceutical] raises $78mm in FOPO

Sun, 01 Sep 1996 00:00:00 -0400

[Medicis Pharmaceutical] (dermatology and skin care) has netted $78mm in a follow-on offering of 1.85mm shares at a price of $45 per share. MDRX markets its acne and skin disorder treatments directly to dermatologists but out-sources non-marketing functions, such as laboratory research, manufacturing and warehousing. Its prescription acne line includes {Dynacin} (minocycline),{Triaz} (benzoyl peroxide and glycolic acid), topical {Theramycin Z}, and {Benzashave}, a topical treatment for acne and bacterial inflammation associated with shaving. OTC products include the {Esoterica} line used to correct minor skin discoloration problems, and {Theraplex} to treat problems of severe dry skin. Proceeds will be used for expansion of marketing and sales, licensing or acquisition of formulations, technologies, products or businesses, R&D, and general corporate purposes.

[Innovir] raises $2mm in private placement

Sun, 01 Sep 1996 00:00:00 -0400

With less than two months of cash left and its stock trading at $1.21 per share, [Innovir Laboratories] has grossed $2mm from the sale of 4mm new shares and class C warrants exercisable at $.50 per share to The Aries Fund and The Aries Domestic Fund. Innovir will file a shelf registration upon closing. For their 35% equity purchase, the Funds will appoint two Directors to Innovir's board. The Funds also receive an option to purchase 2mm shares of common and 2mm class C warrants exerc $.50 per share for a total option purchase price of $1mm. Fully exercised, the Funds would own just over 62%. The company is developing External Guide Sequences (EGSs) which are small oligonucleotides that can bind to disease-causinating the bad section through the cleaving action of RNase P.

[Transcend Therapeutics] withdraws IPO

Sun, 01 Sep 1996 00:00:00 -0400

[Transcend Therapeutics] (formerly Free Radical Sciences; developing treatments for diseases caused by oxidative stress) filed for an IPO of 2mm shares at an assumed price of $13 each, looking to net $24mm. The company plans to use $12mm of the proceeds to fund clinical development of its lead product {Procysteine}, which completed two Phase II trials for adult respiratory distress syndrome; Phase III trials should begin first quarter of 1997. {Procysteine} is a method of delivering the amino acid cysteine into cells and replenishing glutathione, which in turn aids the body in inactivating reactive oxygen species (ROS), a by product of the inflammation process. In certain severe inflammatory disorders, excessive ROS production can cause severe tissue damage.

[Introgen Therapeutics] withdraws 3.2mm share IPO

Sun, 01 Sep 1996 00:00:00 -0400

[Introgen Therapeutics] (cancer gene therapy) has registered a 3.2mm share IPO. [Rhone-Poulenc Rorer] will purchase $6mm worth of Common Stock at the public price in this offering pursuant to an Oct. 94 deal. Introgen is developing two categories of gene cancer therapy products: gene replacement product based on the p53 tumor suppressor gene and gene blocking products which neutralize the activity of a mutant K-ras oncogene. Missing or dysfunctional p53 tumor suppressor genes are the single most common genetic alteration in cancer and occur in over 50% of human cancers. The company is currently testing its p53 products in Phase I/II trials of its lead products for the treatment of non-small cell lung cancer and head and neck cancer.

[Astra] to market [Biogen]'s interferon beta-1a in Nordic states