Prima subsidiary signs licence deal with AstraZeneca

Helmed by a new chairman and in the middle a AUD$5-10 million capital raising, Melbourne's Prima Biomed (ASX:PRR) has ticked the first of the boxes on its lengthy to-do list, announcing that its Arthron subsidiary has signed a non-exclusive license with AstraZeneca to validate its anti-inflammatory Fc receptor target.

Under the terms of the agreement, AstraZeneca will fund a six-month validation study of the Fc receptor. "This is not a repeat study or a confirmation study," said Prima CEO Marcus Clarke. He said the study would provide Prima with further proof of principle which would increase the value of its IP when in future negotiations with AstraZeneca.

Upon successful completion of the study AstraZeneca has the right to acquire a non-exclusive licence to the Fc Receptor technology for research, clinical development and commercialisation of drugs that inhibit the activation of this receptor. Additional terms remain confidential.

Arthron holds patents on the gene expressing the Fc receptor, a cell surface protein which it has found is involved in triggering the inflammatory process.

"There are six families of patents," said Clarke. "For the Astra deal we would be negotiating on the IP which covers the gene, the protein, the 3D structure and a transgenic animal which can be used for in vivo testing. That will be topped up with information from the validation study."

Arthron chemists have also designed small synthetic molecules which inhibit the Fc receptors. The company reported earlier this year that these compounds appear to deliver a more prolonged therapeutic benefit in arthritic mice than other anti-arthritics.

"We've developed 400 lead compounds that are now covered by two patents -- they will be brought to the table," said Clarke. "They represent starting templates in a drug discovery program. Once this research is done and there is a further proof of principle arising from it, then the whole suite of patents will be the subject of negotiation."

"This is an important strategic deal for Arthron as it establishes Arthron's relationship with a blue-chip pharmaceutical company for the validation and progression of Arthron's technology," said Prima chairman Eugene Kopp. "Successful completion of this study will represent a significant milestone for the commercial development of this technology as a new drug target in diseases such as rheumatoid arthritis and lupus. This is the first deal to arise from our commercial strategy with the Fc receptor."

Clarke noted that Prima would retain the rights to develop a biological therapeutic agent -- either a monoclonal antibody or recombinant receptors.

Prima Biomed shares remained unchanged today at $0.45.