from mergermarket.comInvion [ASX:IVX], an Australian...

from mergermarket.com

Invion [ASX:IVX], an Australian clinical-stage pharmaceutical drug developer, is actively seeking a partner or buyer for its INV103 systemic lupus erythematosus (SLE) drug, so that it can focus on strategic development of its core respiratory pipeline, said Chief Executive Officer Greg Collier.

Invion wants to secure a deal by the end of 2014 after final data of its Phase II trial for INV103 is available, he said. The company has spent the past six months having conversations with potential partners, some of which are looking at existing data under confidentiality agreements. The process is being run by Invion’s business development team based in the US, he said.

INV103 is a minimally modified form of a naturally occurring protein that has clinically demonstrated anti-inflammatory and immunoregulatory activity in multiple indications including lupus, rheumatoid arthritis and psoriasis.

Collier declined to give a potential valuation of its lupus asset, but pointed to a number of recent deals in the lupus space, including the USD 250m partnership between Takeda [4502:Tokyo] and Seattle-based Resolve Therapeutics in February 2013, and the USD 665m partnership between AbbVie [NYSE:ABBV] and Belgian antiobody company Ablynx in September 2013.

Funds raised from a deal would be used to accelerate additional clinical data for its two core respiratory products – INV102 and INV104 - both of which currently have clinical trials under way in the US, Collier said.

INV102 (nadolol), a non selective beta blocker approved for use in the treatment of high blood pressure is being repurposed to treat inflammatory airway diseases including COPD and cystic fibrosis. It has completed two Phase II trials and expects interim results for a third Phase II trial in the second half of 2014 and final results in 2015, Collier said.

INV104 (zafirlukast), an oral leukotriene receptor antagonist (LTRA) which was developed by AstraZeneca [LSE:AZN] and approved for the maintenance treatment of asthma , is being developed by Invion as an inhaled product for the treatment of asthma. Invion is working with 3M [NYSE:MMM] to develop the inhaled product. It is also working with 3M to develop an inhaler for INV102. Feasibility of both inhaled products is expected to be completed at the end of 2014 and to be ready for Phase I clinical trials in 2015, Collier said.

Invion will also seek partners or buyers for both INV102 and INV104, Collier said. He declined to give a potential deal value but pointed to San Francisco-based Pearl Therapeutics, which took two respiratory generics to Phase II trials, and worked with 3M to put them into an inhaler, before selling to AstraZeneca for USD 1.2bn in 2013.

Invion has a current market cap of AUD 40m (USD 37m). Invion recently completed an AUD 7m capital round comprising an AUD 5m placement to institutional and professional investors and an AUD 2m rights issue.

Collier led the sale of Australian biopharma company ChemGenex to Cephalon for USD 230m in 2011. Invion’s chief medical officer Mitchell Glass has managed more than 40 drugs in development and obtained five FDA-approved drugs, Collier said.