Replies to post #97507 on Biotech Values

[mcbio]

Re: CYPB/BLRX royalties

Specific terms of the transaction were not disclosed, but the total upfront payment to BioLineRx was $30 million, with total potential clinical and regulatory milestones of up to $160 million through to approval in the United States (the majority of which are related to improvement in cognition), potential commercial milestones of $85 million, and a potential additional $90 million associated with approval for additional indications in the United States or for approval in other countries in North America. In addition, Cypress will fund all continuing development activities and pay BioLineRx a royalty based on applicable sales.

It doesn't say it in this PR, but the Reuters PR (http://www.reuters.com/article/idCALDE65J03G20100620?rpc=44 ) reflects that BLRX will receive royalties of "12 to 18 percent based on sales."

Is this a drug that, if successful, CYPB could bring to market on its own or would they need to further enter into a deal with a big pharma?

[iwfal]

CYPB BioLineRx-

Results of the phase 2b EAGLE study demonstrated that CYP-1020 at the 20-30mg dose range exhibited clinically relevant and statistically significant improvement on the cognition endpoint assessed using the BACS neuropsychological test battery. The 20-30mg dose range of CYP-1020 was superior to both risperidone and placebo at endpoint on the BACS total score (p=0.027 for both), with positive trends in all subsets within the BACS.

I haven't seen any data on this endpoint, apparently the primary differentiator from existing anti-psychotics, in the 10mg dose.

If it showed a trend I'd treat this data as pretty solid. Otherwise it seems wise to be cautious.

PS I looked at all because I tend to trust Kranzler - not that every in-license is successful, but that he is adequately sceptical and kills programs that don't pan out.