Meditech secures deal with Danish firm

Meditech Research (ASX:MTR) has ended the year with the achievement of a major milestone, entering into an agreement with Danish biotechnology company Novozymes.

Meditech described Novozymes as a leader in industrial biotechnology, with a proprietary process for manufacturing high-quality biosynthetic hyaluronic acid using the microorganism Bacillus subtilis. The two companies plan to work together to develop new formulations of Meditech's HyCAMP anti-cancer drug and other products based on Meditech's HyACT technology. Novozymes will also fund the HyCAMP Phase II clinical trial.

"The agreement marks the realisation of a significant milestone for Meditech as it is an acknowledgement of the quality of the science, clinical development of the HyACT technology and the Companies ability to complete a deal," said Meditech CEO Chris Carter.

Under the terms of the deal, each company will be able to access and commercially exploit certain of the other company's intellectual property as well as jointly produced intellectual property. The two companies will also derive financial benefits arising from the each other's commercialisation of the licensed technology.

Meditech did not disclose financial terms of the agreement. Carter said the deal was good for both firms on several levels, with both companies contributing complementary skills. "It's a very synergistic deal -- they've got great technology and we've got great technology," he said.

"The agreement not only enables Meditech to accelerate the development of HyCAMP ahead of a potential licensing deal but also establishes a relationship and technology platform for further collaboration involving Meditech's HyACT."

An added advantage of the deal will be the ability to present possible licensees of HyCAMP and other HyACT products with a complete package, including manufacturing and clinical results, Carter said.