This is why some trade & why you should not hold without a stop loss.
on: Nov 12th, 2003, 4:08am
Biotech deal on immune system drug
A Melbourne biotechnology company has struck a $2 million-plus deal with US-Japanese joint venture TAP Pharmaceuticals over the expanded use of a 20-year-old drug used to treat some forms of cancer.
Norwood Abbey has sold the intellectual rights to research and scientific data on the use of Lupron Depot, which was developed 20 years ago to treat sex hormone-exacerbated conditions including prostate and breast cancer.
A scientific team led by Monash University's Associate Professor Richard Boyd developed the drug for other uses, including the treatment of leukaemia and lymphoma, by focusing on its capacity to bolster the immune system.
Positive results from trials at the Peter MacCallum Cancer Centre and the Alfred Hospital will be the foundation for further development of the drug, which will net Norwood Abbey royalties for as long as it is on the market in its new-found uses.
Norwood Abbey's director of marketing, Bernie Romanin, said the royalty stream would be at the "upper end" of industry standards. It is believed to be in the order of 10 per cent.
Norwood Abbey said sales of the drug in 2002 were worth more than $US850 million ($1.19 billion).
Shares in Norwood Abbey closed 9c lower last night at $2.05.
