Bionomics scores deal worth up to US$345 million

It’s only the opening days of 2012 and already there’s big news afoot in the biotechnology sector, with Adelaide-based Bionomics Limited (ASX:BNO) announcing a deal with US-based Ironwood Pharmaceuticals which could be worth up to US$345 million ($334 million) for the antipodean biotech.

The deal sees Ironwood lead up the development of anti-anxiety compound BNC210, with the company handling worldwide development and commercialisation of BNC210, including handling future clinical trials.

Ironwood paid US$3 million up front, with Bionomics set to receive up to a further US$10 million in research funding and milestone payments over the next two years.

BNC210 has already cleared phase I trials, showing it had promising effects in reducing anxiety without the common sedative side-effect found in existing benzodiazepines used to treat anxiety.

While it is unusual for a pharmaceutical company to partner on a product that has yet to complete phase II trials, Ironwood has recently been on the hunt for new products to fill its back pipeline after recently filing for marketing approval in the US for linaclotide, it’s treatment for irritable bowel syndrome with constipation, and chronic constipation. If the FDA gives it the nod, it’s expected to be approved in June this year.

Bionomics will use the revenue from the deal to help fund further research into other drug candidates, including anti-cancer treatment, BNC105, and memory treatment, Alpha 7.

Bionomics’s (ASX:BNO) share price has dropped a little over 5% since the announcement of the deal on January 5, down to 53c as of morning trading today.