GTC Biotherapeutics (fka GTCB)

[DewDiligence]

GTC’s Relationship With PharmAthene

[Updated and reorganized; fixed bad hyperlinks.]


#msg-4107224 Original IP license for Protexia (2004)
#msg-22544066 Protexia process and purification agreement
#msg-17826727 IP license expanded to all uses of Protexia
#msg-18433447 Protexia program in Alzheimer’s disease

#msg-13565694 Protexia grant from USDoD
#msg-14110344 Protexia grant from NIH
#msg-17587523 Biodefense drug-development timeline

#msg-22543627 PharmAthene now trades on the Amex

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What are the economics of the relationship for GTC?

GTC has not disclosed the economic terms of the PharmAthene relationship; however, Dr. Cox did provide some color in reply to a question on GTC’s 4Q06 CC (#msg-17607391). Based on that, I think it’s conservative to assume that GTC stands to earn a mid-single-digit royalty on the sales of Protexia. The PharmAthene relationship could thus generate a non-trivial income stream for GTC, especially if the Protexia program in Alzheimer’s disease were to pan out.