Prima signs US$20m deal with US biopharma

Prima Biomed (ASX:PRR) has signed its second deal -- reportedly worth as much as US$20 million -- for anti-inflammatory therapeutics which act at the FcoRIIa receptor, this time with US biopharmaceutical company Zymogenetics.

In October, AstraZeneca took an option on the synthetic small molecule inhibitors of the FcoRIIa receptor. After funding a six-month validation study, AstraZeneca has the right to acquire a non-exclusive licence to the FcoRIIa receptor technology for research, clinical development and commercialisation of drugs. The receptors are located on the surface of the inflammatory white blood cells, and inhibitors have been shown to have anti-arthritic activity in mouse models.

When the AstraZeneca deal was announced, Prima's Marcus Clarke said Prima would retain the rights to biological therapeutics -- either monoclonal antibodies or recombinant proteins. It is the right to develop recombinant protein inhibitors of the FcoRIIa receptor which Zymogenetics has secured, taking a worldwide non-exclusive option, as well as a right of first refusal.

Zymogenetics will pay Prima's subsidiary, Arthron, an up-front option fee of $US100,000 for the first year, and $US150,000 for the second year to evaluate Prima's Fc receptor technology. A further $US500,000 will be payable if the company chooses to take up the exclusive license to the technology.

All going to plan, Prima would then be due milestone payments and sales bonuses as the technology progresses through a pre-clinical and IND-based clinical trial program.

"Zymogenetics is really the premier developer in the area of recombinant proteins," said Prima chairman Eugene Kopp. "This deal is a long-term deal -- along the progression the contract specifies a number of payments. It is broadly between $20 and $25 million. There are milestone payments and sales bonuses which go right through pre-clinical, clinical IND and FDA registration. The royalties are separate. Zymogenetics are spending several million to get to the position where they can have an exclusive option."

Prima business development manager Vanessa Waddell said the deal was purely IP-based, covering the Fc receptor DNA-sequence and protein patents. It did not include recombinant protein product candidates. Prima retains the rights to antibody-based inhibitors of the Fc receptor and diagnostics.