Mimotopes to team with Genzyme in peptide supply deal

PharmAust (ASX:PAA) subsidiary Mimotopes will team up with US-based Genzyme Pharmaceuticals in a strategic alliance to provide peptide products and services to both companies' customers globally.

"We think we are getting a pretty good deal -- we are part of a AUD$15 million company in PharmAust, partnering through this alliance with a US$17 billion company in Genzyme," said PharmAust and Mimotopes managing director Dr Paul D'Sylva. "Even though it is a David and Goliath size difference, there is an equal value in the relationship.

"By joining forces we are able to better service our existing customer base and offer a more attractive product suite which will open up new markets. It is anticipated the strategic alliance will be a significant source of revenue growth for both companies. We specialise in research grade peptides -- custom peptides, peptide libraries and peptide applications -- while they specialise in clinical grade and therapeutic grade peptides."

D'Sylva said the companies were on track to finalise the agreement in December 2005 and make it operational by January 2006.

Genezyme Pharmaceuticals, a business unit of Genzyme Corp -- the third-largest company on the Nasdaq -- is focused in the development and manufacture of peptide and lipid products and technologies.

The Genzyme Pharmaceuticals/Mimotopes co-brand peptide product will be made available to both companies' customer bases, with Mimotopes' range of research-grade and pre-clinical peptides available to Genzyme Pharmaceuticals' global customer base and distribution network.

"The deal also capitalises on Mimotopes' expertise in the Asia-Pacific region and Genzyme's strong presence in North America and Europe," said D'Sylva.

This is the second major US deal for Mimotopes this year -- in October, it was contracted to supply California-based life science technology group Invitrogen with custom preclinical peptides for Invitrogen's customers worldwide. Australian Biotechnology News understands these two deals could be leveraged in the future.

Rights offer

Meanwhile, PharmAust has lodged a prospectus with ASIC and ASX seeking to raise AUD$3.03 million via a non-renounceable rights issue of more than 15 million ordinary fully paid shares at $0.20 cents per share.

"The capital will be used to fund expansion of PharmAust discovery chemistry companies Epichem and Mimotopes and the TGA licence of PharmAust's generic pharmaceutical facility, and the registration of generic pharmaceutical products from PharmAust's Malaysian partner Xepa Soul Pattinson," said D'Sylva.