PREDIX Pharmaceuticals (PRDX)

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Predix to collaborate with Amgen on drug development
Predix will receive $20 million immediately, and says the deal could reach as much as $300 million.

Gali Weinreb 31 Jul 06 19:58

Predix Pharmaceutical Holdings Inc. has signed a cooperation agreement with biotechnology giant Amgen Inc. (Nasdaq: AMGN), one of the leaders in its field. The two companies will collaborate on the development of existing Predix preclinical compounds.
Under the agreement Amgen will be responsible for clinical development and commercialization of the product candidate. Predix will receive an upfront payment of $20 million, and it will also can earn additional fees of $287.5 million in milestone payments if certain clinical, regulatory and sales milestones are achieved. Predix believes that it could receive up $300 million, should the drug reach the market. Similarly, Predix will have the opportunity to receive potential double-digit royalties on future sales of products resulting from this collaboration, plus an option to promote a product resulting from this collaboration to specialty physicians in the US for a selected indication.

Predix’s S1P1 modulator has not been mentioned as part of its product pipeline since it is still at the pre-clinical stage. It is designed for treatment of autoimmune and inflammatory disorders, a field in which Amgen is considered to have an exceptionally strong presence.

The deal comes at an interesting juncture for Predix, which is about to merge with EPIX Pharmaceuticals (NASDAQ: EPIX), at a value of $90 million for Predix, after it abandoned its plans to make an IPO of its own at a much higher value. EPIX recently suffered a blow when international drug company Schering Plough (NYSE: SGP) waived its option to continue developing and marketing the molecule Vavoyst. The announcement sent EPIX stock down 7% that day, a fall which already includes a partial pricing of Predix’s activity. The US Food and Drug Administration (FDA) subsequently announced a further delay in approval for the product, which has already been postponed a number of times.

Published by Globes [online], Israel business news - www.globes.co.il - on July 31, 2006

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