By ROD ORAM
Auckland-based Genesis Research and Development has sold the Japanese rights to Pvac, its vaccine for treating the chronic skin complaint psoriasis, to a Japanese pharmaceutical company.
Revenues from the deal with Zenyaku Kogyo, the first commercial agreement on the ground-breaking therapeutic vaccine, will more than fund the next stage
of the drug's US clinical trials.
Genesis is also seeking a further $US10 million so it can accelerate its gene research programmes in human health, forestry and agriculture. The company said it had yet to decide whether to raise the money by issuing more equity or by selling participation rights in its research.
To help secure the finance, it has hired as a consultant Peter Wright, the former finance director of MAS Technology, the Wellington microwave communications manufacturer which was floated on the Nasdaq market in the US and then taken over by a US competitor.
Traded on the local grey market, Genesis is looking to float in late 2001 after completion of the next stage of US clinical trials of Pvac. The tests are expected to start in October at 11 US sites with the hope of securing Federal Drug Administration approval for the drug in about 2004.
Genesis' share of the costs of the trials would be about $NZ6 million to $10 million, said the company's chief executive, Dr Jim Watson. The deal with Zenyaku Kogyo more than covered the cost, he said.
The Japanese company will pay Genesis licence fees, research funding and milestone payments based on successful clinical trials and commercial progress. It will also receive royalties on product sales. Exact terms of the deal were not released.
Zenyaku Kogyo would probably be able to secure Japanese approval for Pvac about a year earlier than US approval thanks to a faster pace to final tests, Dr Watson said.
"The agreement meets future costs of Pvac's development, allowing Genesis to retain a higher proportion of Pvac royalties for our shareholders," Dr Watson said. "We are seeking further deals of this nature."
The deal was brokered by Corixa, a US biotech company focused on vaccines which is Genesis' partner in Pvac's development.
Psoriasis, a common but chronic skin complaint is characterised by inflammatory lesions with red scales.
An estimated 100 million suffer from it around the world and Pvac is the first prospective cure. Other drugs now used treat only the symptoms.
