pharma giant extends deal with bionomics

Cameron England From:
The Advertiser May 24, 2010 4:18PM

GLOBAL pharmaceutical company Merck Serono has extended a potentially lucrative research collaboration with Adelaide company Bionomics.

Bionomics said Merck had extended a license agreement signed in 2008 by a year, and increased its research funding.

The news pushed Bionomics shares higher, with the stock trading higher at 30.5c shortly before close.

Merck is aiming to develop treatments for multiple sclerosis (MS) and other auto-immune conditions such as arthritis, using Bionomics' Kv1.3 expertise, which is being used to identify potential new drug candidates.

The compounds discovered by Bionomics target the potassium ion channel Kv1.3, which is a key modulator of the immune system.

It is a target found on human immune cells which are associated with nerve cell damage in patients with MS.
Bionomics said Kv1.3 inhibitors had been shown to inhibit the proliferation of these immune cells, suggesting that they have application in the treatment of MS and potentially other autoimmune conditions.

Bionomics managing director Deborah Rathjen said the companies had been working well together.

"In addition to the close collaboration with Bionomics in Kv1.3 chemistry and biology, our European subsidiary, Neurofit, has forged close links with Merck Serono scientists in delivering our contributions to the development program.

"The extension is a clear signal of progress being made and validates our decision to partner this program early with Merck Serono, a world leader and pioneer in treatments for multiple sclerosis.''

Under the 2008 agreement Bionomics received an upfront payment of $US2 million.

Merck also agreed to fund all development activities, including clinical development.

"For each compound that is successfully developed and commercialised as a result of the partnership, Bionomics may receive milestone payments of up to $US47 million and will be eligible to receive undisclosed royalties on the net sales of licensed products,'' the company said.

Merck is a German-based pharmaceutical and chemical business with about 33,600 employees in 64 countries and total revenues of about euro7.7 billion last calendar year.