Pharmacia, PDT sign exclusive agreement.
Under the agreement, Pharmacia is granted an exclusive, worldwide license to SnET2, now in clinical trials. In exchange, Pharmacia will provide clinical development funding for SnET2 and will make milestone payments and pay royalties to PDT. The parties agree that the first stage of funding will be approximately $25 million, including an equity investment.
The potential value of the collaboration, not including royalties, is estimated to be up to $100 million if specified development milestones are achieved in initially targeted indications.
Pharmacia is purchasing 400,000 shares of PDT stock for $12 million. After this investment, Pharmacia will hold 483,334 shares and PDT will have approximately 6.9 million shares outstanding.
Under the collaboration, PDT will conduct preclinical and Phase I/II clinical studies of SnET2 in various indications. Phase III clinical studies, international registrations and global marketing will be conducted by Pharmacia. The licensing and equity agreements will be effective upon the execution of supporting supply contracts now in late-stage negotiations.
Previously, PDT and Pharmacia entered into an exclusive supply agreement in 1994 for the formulation and packaging of SnET2.
``SnET2 is the leading drug brought forward from our laboratories, and we are pleased that such a strong pharmaceutical partner will pursue its commercialization,'' said Gary S. Kledzik, Ph.D., PDT chairman and chief executive officer. ``The development funding from this collaboration will allow us to accelerate our preclinical and clinical testing programs, and the royalties provide for substantial return in the future.
``Pharmacia's plan to develop SnET2 for a number of disease indications is a landmark event, not only for PDT Inc. but also for the technology of photodynamic therapy, supporting its advance from research to mainstream medicine,'' added Kledzik.
``Pharmacia recognizes that photodynamic therapy has an impressive number of applications in diverse medical specialties,'' said Lars Lindegren, president of Pharmacia S.p.A. ``PDT Inc. has integrated synthetic drug chemistry with clinical light systems and has set the stage for the marketplace. This agreement links PDT's technological expertise in photodynamic therapy to Pharmacia's worldwide regulatory and marketing capabilities.
``SnET2's promise to treat many types of cancer tumors adds significant value to Pharmacia's portfolio of anticancer drugs,'' said Lindegren. ``In addition to cancer, our initial targets include urology and dermatology applications.''
Pharmacia ranks among the world's largest pharmaceutical companies and has leading positions in many therapeutic areas, including oncology. Pharmacia's anticancer agents are used in treating a number of commonly occurring cancers, including breast, lung, ovary and lymphoma, as well as AIDS-related conditions.
PDT was founded in 1989 to develop, manufacture and commercialize pharmaceuticals and devices for the medical technology known as photodynamic therapy. Photodynamic therapy uses light- activated drugs to treat or diagnose diseases in a variety of categories, including cancer, urology, dermatology, cardiology, ophthalmology and gynecology.
PDT's first drug, SnET2, is in Phase II clinical trials for cutaneous carcinomas and AIDS-related Kaposi's sarcoma, and is cleared to enter Phase III clinical trials for Kaposi's sarcoma in the United Kingdom.
CONTACT: PDT Inc., Santa Barbara
Laurens Lichty or Jan Wiegand, 805/685-9880
Pharmacia S.p.A., Milan, Italy
Lars Lindegren, +39 2 4838 2273
Paine & Associates, Encino, Calif.
Deborah Kazenelson, 818/382-3120
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|Date:||Jul 7, 1995|
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