PAION AG / Key word(s): Agreement
15.10.2010 13:01
---------------------------------------------------------------------------
PAION EXPANDS DESMOTEPLASE AGREEMENT WITH LUNDBECK
- PAION grants to Lundbeck research rights and access to potential
follow-up compounds
- PAION receives EUR 1.5 million upfront payment
- Desmoteplase milestone payments increased by EUR 5 million
- EUR 25 million milestone payments for 2nd generation molecules up to
first commercial sale
Aachen (Germany), 15 Oktober 2010 - The biopharmaceutical company PAION
AG (ISIN DE000A0B65S3; Frankfurt Stock Exchange Prime Standard: PA8) today
announces that it has expanded the Desmoteplase licence agreement with its
partner H. Lundbeck A/S. In the new agreement PAION has granted Lundbeck
research rights and access to potential Desmoteplase follow-on compounds
that were identified by PAION. In the future Lundbeck will also be
responsible for the patent maintenance. PAION receives a EUR 1.5 million
upfront payment for the expanded agreement.
Under the terms of the new agreement Lundbeck obtains exclusive, global
rights for Desmoteplase 2nd generation molecules and full control of
development and commercialisation of resulting drugs while bearing all
future development and patent costs. In case one of the molecules should
move into clinical development, PAION could receive up to EUR 25 million
milestone payments for the development of this molecule. In addition, PAION
will receive revenue-dependent double-digit net royalties.
Within the new deal structure the milestone payments for Desmoteplase have
also been increased. PAION is now eligible for a total of up to EUR 68
million (previously EUR 63 million) in milestone payments, of which EUR 40
million (prev. 38) consist of pre-commercialisation milestones and EUR 28
million (prev. 25) on first commercial sales and undisclosed sales targets.
'This agreement underscores Lundbeck's high commitment to Desmoteplase,'
commented Wolfgang Söhngen, CEO of PAION. 'We are proud that our research
of potential follow-on compounds, started in 2006, is being rewarded.'
In 2005, PAION granted Lundbeck exclusive worldwide rights ex US to develop
and market Desmoteplase to treat acute ischemic stroke. In 2008, the
partners expanded this deal to give Lundbeck exclusive, global rights to
develop and commercialize Desmoteplase. PAION has an option to co-promote
Desmoteplase in Germany, Switzerland and Austria.
###
About Desmoteplase
Desmoteplase, the most fibrin-specific plasminogen activator known today,
is a genetically engineered version of a clot-dissolving protein found in
the saliva of the vampire bat Desmodus rotundus. It is currently being
developed for the treatment of acute ischaemic stroke for which it has
received fast-track designation from the U.S. Food and Drug Administration.
The treatment is being carried out in a timeframe of three to nine hours
post onset of stroke symptoms - a time window for which there currently is
no approved drug treatment.
So far Desmoteplase has been tested in two Phase II studies and one Phase
III study for the treatment of ischaemic stroke. In January 2008 H.
Lundbeck A/S obtained worldwide rights to Desmoteplase from PAION. A
clinical Phase III programme with Desmoteplase was initiated by Lundbeck in
December 2008, recruiting patients in Europe, North and South America,
Africa and Asia Pacific. In parallel Lundbeck also focuses on the
development of the compound for the Japanese market, for which Lundbeck
initiated a Phase II study (DIAS-J) in March 2010.
About PAION
PAION is a biopharmaceutical company headquartered in Aachen, Germany and
has a second site in Cambridge, UK. The company is specialised in
developing and commercialising innovative drugs for the hospital-based
treatment in indications for which there is a substantial unmet medical
need. PAION has a 'Search & Develop' business model, which is based on its
core expertise in drug development. Where appropriate, particularly during
the late stages of the clinical development, PAION seeks to collaborate
with experienced partners.
Contact
Ralf Penner
Director Investor Relations & Public Relations
PAION AG
Martinstrasse 10-12
52062 Aachen - Germany
Phone: +49 241 4453-152
E-mail: r.penner@paion.com
www.paion.com
Disclaimer:
This release contains certain forward-looking statements concerning the
future business of PAION AG. These forward-looking statements contained
herein are based on the current expectations, estimates and projections of
PAION AG's management as of the date of this release. They are subject to a
number of assumptions and involve known and unknown risks, uncertainties
and other factors. Should actual conditions differ from the Company's
assumptions, actual results and actions may differ materially from any
future results and developments expressed or implied by such
forward-looking statements. Considering the risks, uncertainties and other
factors involved, recipients should not rely unreasonably upon these
forward-looking statements. PAION AG has no obligation to periodically
update any such forward-looking statements to reflect future events or
developments.
15.10.2010 13:01 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: PAION AG
Martinstr. 10-12
52062 Aachen
Deutschland
Phone: +49 (0)241-4453-0
Fax: +49 (0)241-4453-100
E-mail: info@paion.com
Internet: www.paion.com
ISIN: DE000A0B65S3
WKN: A0B65S
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Berlin, Düsseldorf, Stuttgart
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: PAION EXPANDS DESMOTEPLASE AGREEMENT WITH LUNDBECK
| Source: EQS Group AG