Progen Pharmaceuticals Ltd (ASX:PGL, NASDAQ:PGLA) announced it has signed a License and Collaboration Agreement with Medigen Biotech Corporation (Taipei, Taiwan) for the development and commercialisation of muparfostat (PI-88) globally.
Muparfostat is a multi-targeted cancer therapeutic in late stage development which inhibits
both angiogenesis (or tumour promoting) factors, Fibroblast Growth Factors (FGF) 1 and 2, and heparanase, an enzyme implicated in metastasis (tumour spread).
This agreement creates a binding arrangement between the parties.
"The signing of this License and Collaboration Agreement with Medigen puts the muparfostat development program firmly back on track for Phase III and commercialisation,” said Sue MacLeman, Chief Executive Officer, Progen Pharmaceuticals Ltd. "Medigen is well positioned to take this important asset forward. They are experienced with the product through their involvement in both its development and Phase II clinical trials. They also have a strong track record and understanding of the Asian markets which will be the major markets for muparfostat in liver cancer.”
“Medigen looks forward to working with Progen diligently to make PI-88 a successful story in the treatment of liver cancer,” said Stanley Chang, Chairman and Chief Executive Officer, Medigen Biotechnology Corp.
“Medigen is one of the leading biotech companies in Taiwan, and has been devoted to drug development in the area of cancer therapeutics for more than 10 years. We are delighted to be able to finalise this agreement and look forward to a positive and productive relationship that will bring benefits to Progen shareholders,” said Stuart James, Chairman, Progen Pharmaceuticals Ltd.
While specific details of the deal remain confidential, the company can disclose that this is an exclusive worldwide License and Collaboration agreement with sub license rights for the commercialisation of PI-88 for the therapeutic and prophylactic treatment of cancer. The royalty rate is a low double digit rate in territories where there is a valid patent and high single digit in territories where there is not. In addition, there are other milestones in the project.
Progen will also be contracted to manufacture the clinical trial material. As with all drug development
projects there are no guarantees that the clinical trial will be successful or that the product will be marketed. In the event that the product is commercialised or milestones are achieved and when the impact of these are material the company will update the market at those times.
1 July 2010