Sydney Uni spinout lands deal to develop psychiatric drugs

University of Sydney spinout Kinoxis Therapeutics has announced a strategic partnership and licensing agreement with global pharmaceutical company Boehringer Ingelheim for the development of first-in-class oxytocin-targeting precision psychiatry treatments to improve the quality of life of people living with neuropsychiatric disorders.

The partnership, worth up to US$181 million ($273 million) in payments — plus royalties on any future sales — is set to establish Kinoxis as a global player in the development of precision drugs for the treatment of conditions including schizophrenia, depression and dementia.

Social dysfunction is a major symptom of many neuropsychiatric disorders and can manifest in various ways — including social withdrawal, communication difficulties, inappropriate or abnormal behaviour during social interactions, difficulty forming or maintaining relationships, aggressive behaviour and difficulty recognising, understanding or responding appropriately to emotions in others. Despite the high prevalence and impact of social dysfunction, there are currently no specific pharmacological treatments.

With the neuropeptide oxytocin playing a critical role in the regulation of social behaviour, the partnership with Boehringer Ingelheim will use chemical compounds developed by Kinoxis that target the oxytocin receptor as a starting point to develop treatments for various neuropsychiatric disorders. These compounds were discovered through medicinal chemistry programs led by Kinoxis co‑founder Professor Michael Kassiou, from The University of Sydney’s Drug Discovery Initiative and School of Chemistry.

Kinoxis Chief Scientific Officer and co-founder Associate Professor Michael Bowen and his team have been evaluating the potential therapeutic use of the compounds and different approaches to targeting the oxytocin receptor. He said: “I’ve spent nearly 15 years researching the oxytocin system as a potential target for developing new treatments. It’s truly special to be partnering with a leading global pharmaceutical company that shares our vision for its potential to transform the way we treat disorders of the brain and mind.

“This outcome demonstrates what can be achieved through industry–university partnerships. Co-founding Kinoxis and providing scientific leadership for the company and its partnership with the university has been the highlight of my career.”

Under the terms of the agreement, Kinoxis will receive an upfront payment and research support payments. The company is eligible for research, preclinical, clinical, regulatory and commercial milestones of up to US$181 million, in addition to royalties on future Boehringer Ingelheim product sales. The partnership will thus bring significant funding to The University of Sydney to support further research, to be conducted in close collaboration with experts from Boehringer Ingelheim and Kinoxis.

“More than three million Australians suffer from illnesses that impair social functioning,” Kassiou added. “The oxytocin receptors in the brain have emerged as an attractive drug target but they have been intractable with small molecules.

“More than 10 years ago, my group began investigating the chemistry and pharmacology relating to the oxytocin receptor. We have discovered several series of small molecules, now licensed to Kinoxis, that have allowed us to target the oxytocin receptor in ways not previously possible.

“As lead inventor and co-founder of Kinoxis, I am proud of what has been achieved.”

Image credit: iStock.com/ArtistGNDphotography