Profile signs emphysema drug deal
Article Date: Jul 17 2002Inhaled drug company Profile Therapeutics has unveiled a deal with a Californian biotech group which, claims chief operating officer Simon Shaw, proves both the commercial viability of Profile's science and its unusual business model. William Davidson reports.
Profile (PTP) is to receive around $5 million (£3.2 million) from Alpha Therapeutics, a Californian drug development business which is a subsidiary of Japanese giant Mitsubishi, in exchange for a licence to use Profile's AAD inhaler technology. The money will be spread over the life of the collaboration, with a 'small' access fee payable today.
Profile will work with Alpha to develop an Alpha-1-Antitrypsin product for use in the treatment of patients with hereditary emphysema. An intravenous version of the drug has been filed for marketing approval in the US.
Shaw is fairly confident that it will receive this approval. If it does, the omens will be good for the new aerosol version.
The agreement relates to Profile's drug delivery division, which has developed the AAD technology. This is a new way of 'aerosolising' drugs for inhalation, and can deliver a precise, reproducible amount of drug to the lung. Shaw says: 'This is the first royalty-based collaboration from our drug delivery arm.
'It is also a validation of our business strategy.' This involves developing hand-held aerosol devices, placing them with patients, providing back-up and training, as well as developing new drugs in inhalable form.
The shares picked up 2p to 37p on the news – no mean feat in the current environment. This values Profile at £18.2 million.
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