Peptech wins three more US patents

Sydney-based company Peptech has been issued three divisional applications by the US Patent and Trademarks Office in respect of its TNF antibody patent, bringing the antibody's patent tally to four.

Managing director Stephen Kwik said the issue was a significant development in Peptech's aim to generate royalties from our anti-TNF antibody patents.

"It opens the door for Peptech to receive royalties from sales in the US," he said.

Meanwhile Remicade, a TNF antibody therapy, developed by drug company Centocor to treat rheumatoid arthritis and Crohn's disease, is approved in the USA and Europe. Other anti-TNF products in late stage development are D2E7 (BASF) and CDP 571 (Celltech Chiroscience).

So far in 2002, Centecor's sales of Remicade were $895 million in the US and $140 million for rest of the world, said Kwik. He said that sales in the US were seven times higher than the rest of the world.

Kwik said he was optimistic about the Peptech's future cash flows, despite the company's current challenges.

In the past weeks, Peptech faced difficult times when chairman Ed Tweddell and two other board members resigned. A worldwide CEO search was put on hold and Kwik, who had earlier resigned, offered to stay in his role for another 12 months.

As well as receiving royalties from Centocor for Remicade sales in the US, Peptech is expected to commence sales of the D2E7 rheumatoid arthritis drug in 2003.

Peptech also has investments in the UK-based biotechnology, Domantis to develop four single domain anti-body targets.

Kwik said the first single domain target built upon Peptech's existing TNF antibody patents.

The veterinary arm to the company, Peptech Animal Health, will be applying to the Australian authorities for registration of its animal contraceptive in late June to be sold in Australia. Kwik said once it was registered in Australia, the company would apply for registration in the US and Europe.