Delays extend Prima-AstraZeneca partnership

AstraZeneca has agreed to extend the completion date for a validation study of Prima Biomed (ASX:PRR) subsidiary Arthron's anti-inflammatory Fc receptor target.

The study was initially scheduled to conclude in April, with a final research report being made available to AstraZeneca, but difficulties in securing samples for testing have delayed experiments being conducted at the Austin Research Institute.

"The samples we've been testing have come from human volunteers, and the process of securing those samples have just taken longer than we originally anticipated," said Prima business development and IP manager Vanessa Waddell.

The research program was established in November 2004, following AstraZeneca's agreement with Arthron to fund a six-month validation study of the Fc receptor in October 2004.

Arthron holds patents on the gene expressing the Fc receptor, a cell surface protein which it has found is involved in triggering the inflammatory process.

The final report on the program being conducted at the ARI is expected before the end of the year, said Waddell.

AstraZeneca will also now complete further studies as to the role of the Fc receptor in a model of rheumatoid arthritis, to be completed by June 30, 2006. These new studies to be conducted at AstraZeneca's UK facilities and will occur at the same time as Arthron completes the studies already underway at the ARI.

"This indicates a greater level of interest in the technology by Astra to now undertake some work in their research labs as opposed to our research labs," said Waddell.

Under the initial terms of the agreement, AstraZeneca has the right to acquire a non-exclusive licence to the Fc receptor technology for research, clinical development and commercialisation of drugs that inhibit the activation of this receptor, upon successful completion of the validation study. Additional terms remain confidential.

"AstraZeneca has retained the right to negotiate for a licence, we've just extended the time frame for that," said Waddell. "We would still hope by mid-way through next year to announce where Astra are going in terms of their strategic thinking on this target and whether they will exercise the licence. We certainly didn't want to lose that opportunity with them."