Biotech Values

[DewDiligence]

DNA, AC Immune (Switzerland) Ink Alzheimer’s Deal

[It’s odd that DNA rather than parent Roche is the licensee.]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061207:MTFH26758_2...

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Genentech signs $300 mln drug deal with Swiss firm

Thu Dec 7, 2006 6:11 AM ET

ZURICH, Dec 7 (Reuters) - Genentech <DNA>, the world's second-largest biotechnology company, has entered into an exclusive licensing deal with privately owned AC Immune of Switzerland to develop treatments for Alzheimer's disease.

AC Immune, founded in 2003 and belonging to the Ecole Polytechnique Federale in Lausanne, said on Thursday it could receive payments amounting to more than $300 million if its anti-beta-amyloid antibody drugs get to market. The Swiss biotech group will also be entitled to royalties on any eventual sales.

"In the context of the agreement, AC Immune will have a solid financial basis over the next three years, which will make possible a rapid development of other programmes," AC Immune Chief Financial Officer Armin Maeder said in a statement.

Alzheimer's disease is a hot area of research for many drugmakers, and a number are focusing on new ways to tackle the build-up of beta-amyloid plaque in the brain that is linked to the degenerative condition.

U.S.-based Genentech is majority held by Swiss drug group Roche Holding AG <ROG.VX>.

AC Immune is focused on developing treatments for conformational diseases such as Alzheimer's and Prion disease and for cancer.

Its products are still only at the preclinical stage of development, but the first experimental drug is expected to start Phase I clinical testing in 2007.

In animal tests, AC Immune's leading antibody has succeeded in making beta-amyloid soluble, resulting in a directly correlated improvement in memory, according to the company.
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