Phylogica teams with Fox Chase

Phylogica (ASX:PYC) has signed a partnership with leading US cancer research institute, the Fox Chase Centre, that gives the Perth peptide therapeutics developer an exclusive global licence to exploit Fox Chase's proprietary technology to screen molecules for anti-cancer activity.

Phylogica will use the technology to explore its vast libraries of phylomers -- short peptides (< 30 residues) derived from the proteins of 'extremophile' microbes -- for peptides with anti-cancer activity.

Phylogica said the technology would reduce the time and cost involved in screening its phylomer libraries for drug candidates, ultimately increasing its competitive advantage over antibody-based technologies.

In return, Fox Chase will have the right to screen Phylogica's phylomer libraries for peptides with activity against its leading cancer and inflammatory-disease target, NF Kappa-beta.

Fox Chase is a founding shareholder in Phylogica, and the company said the cancer research institute's decision to expand its partnering opportunities demonstrates the value of the relationship.

Phylogica will pay its partner with a combination of $25,000 in cash, and 500,000 shares at 20c, lifting Fox Chase's shareholding from 1.7 per cent to 2.16 per cent. The deal falls within the company's 15 per cent placement capacity and does not require ratification by shareholders.

Phylogica CEO Stewart Washer said the Fox Chase technology would soon add to the company's solid pipeline of drug candidates, and add value to its pharmaceutical company partners.

Chief operating officer Greg Pullen said the in-licensed technology would strengthen Phylogica's proprietary yeast di-hybrid screening technology for drug activity. The exclusive licence from Fox Chase allowed Phylogica to use the technology in-house, and to develop diagnostic kits.

Phylogica has four different phylomer libraries, the largest containing a hundred different phylomers. The peptide molecules, randomly cleaved from the specialised proteins of bacteria and archaea adapted to extreme environments, potentially complement any shape found in nature. The company believes they will offer much higher biding affinities and specificity for target molecules than current antibody molecules.

"We have all the basic shapes in nature," Pullen said. "If we can't find a molecule to fit a target, nobody can."