GALAGEN SIGNS TECHNOLOGY LICENSING AGREEMENT WITH NESTLE S.A.
MINNEAPOLIS, May 27 /PRNewswire/ -- GalaGen, Inc. today announced it has signed a technology licensing agreement with Nestec, the research division of Nestle', Switzerland. The agreement provides GalaGen with exclusive North American rights to Nestec's patents, clinical data and manufacturing technology for two biopharmaceutical products that can be derived from bovine milk and colostrum. GalaGen and Nestle' will share co-exclusive marketing rights outside North America. These natural, orally-delivered biopharmaceuticals are produced from milk- and colostrum-based immunoglobulin (MCBI) proteins and are used to prevent or treat various digestive diseases. As part of the agreement, GalaGen is receiving Phase I/II clinical data for the two MCBI products. One of the products will treat rotavirus infections, which cause severe diarrhea in infants. Rotavirus infections are the most common cause of hospitalization for infants under two years of age in the United States. Another product that is part of the licensing agreement will treat a strain of enterotoxigenic E. coli bacteria, which often infects visitors to developing countries and causes a gastrointestinal disease commonly referred to as "Traveler's Diarrhea." Both MCBI products must receive marketing clearance from the U.S. Food and Drug Administration (FDA) before being sold in the United States. However, Nestec's clinical data provide GalaGen a head start in the long and often costly FDA regulatory process leading to marketing approval. Jack Sheppard, chairman and CEO of GalaGen, said, "Both of these Nestec products are well along in their clinical development, and complement our existing portfolio of MCBI products that use immunoglobulin proteins concentrated from milk and colostrum to treat gastrointestinal diseases. This represents an enormous opportunity for GalaGen to access products with significant commercial potential, on terms that are favorable to both parties." GalaGen, based in the Twin Cities suburb of Arden Hills, was formed in March 1992 as a spin-off from Land O' Lakes. In addition to the Nestec products, the company currently has three MCBI products in clinical trials, and two in late-stage preclinical development. GalaGen currently has products under development that will treat cryptosporidiosis (an intractable diarrhea caused by a parasite that infects HIV/AIDS patients), gastric ulcers and several other infectious diseases of the gastrointestinal tract. In addition, GalaGen is developing high-value biopharmaceuticals from the milk of transgenic animals. -0- 5/27/93 /CONTACT: John Swenson of Swenson Falker Eilertsen, 612-371-0000, for GalaGen/
CO: GalaGen, Inc. ST: Minnesota IN: MTC SU:
AL -- MN005 -- 2810 05/27/93 09:29 EDT
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|Date:||May 27, 1993|
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