12th Jun 2014 06:52
LONDON (Alliance News) - AstraZeneca PLC said Thursday that it had signed a global licence agreement with AIM-listed biotechnology company Synairgen PLC for its SNG001 compound for the treatment of infections that exacerbate asthma.
The compound is used to treat respiratory tract infections in patients with severe asthma, by correcting a deficiency that makes patients vulnerable to the infections.
Under the terms of the deal, AstraZeneca will pay Synairgen an up-front free of USD7.25 million, with potential milestone payments of up to USD225 million possible.
It will pay tiered royalties ranging from single-digits up to mid-teens on commercial sales of the product. AstraZeneca will also take up all future development costs of the product, and will begin a Phase IIa study of SNG001 in early 2015.
The treatment can potentially be expanded into a programme for other pulmonary diseases, including chronic obstructive pulmonary disease, the companies said.
"Respiratory disease is a core therapeutic area for AstraZeneca, and a key growth platform for the company," said AstraZeneca's Head of Respiratory, Inflammation & Autoimmune Innovative Medicines Maarten Kraan in a statement.
"We are very pleased to have progressed SNG001 through pre-clinical and clinical development to the stage where it could attract such a well-qualified global development partner to progress the programme," said Synairgen Chairman Simon Shaw in a statement.
Synairgen said it will now continue to use its platform technology to assess and in-license further therapies.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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