Peregrine Pharmaceuticals Enters into Development Collaboration with Dios Therapeutics
News Jun 01, 2007
Peregrine Pharmaceuticals, Inc. has announced that it has entered into a development collaboration with Dios Therapeutics, Inc.
Under the terms of the agreement, Peregrine will provide process development and manufacturing services and know-how to support early clinical development for Dios' proprietary humanized monoclonal antibody for the treatment of thyroid associated ophthalmopathy (TAO) using existing development and manufacturing capacity once Dios provides Peregrine with its lead humanized antibody product candidate.
In exchange for these development efforts, Peregrine has the option to convert its development fees into either cash or equity in Dios at a preferential conversion rate after Phase I trials. Peregrine also could receive a royalty on net product sales or Dios has the option to buy out the royalty obligation for a one-time fee which could total up to $50 million dollars.
The buy-out option is exercisable anytime for a period up to two years after first commercial sale. Under the terms of the agreement, Dios is responsible for all third party expenses related to manufacturing process development as well as all pre-clinical and clinical trial costs.
"Even with increased demand for our manufacturing services from outside clients, we continue to seek attractive opportunities such as this to create value out of our existing manufacturing expertise and capacity," stated David King, Peregrine's vice president of business development.
"We are particularly pleased to enter into this collaboration with Dios for this exciting first-in-class technology that has already shown promising signs of activity," King continued.
"We are delighted to enter into this strategic relationship with Peregrine because of its proven capabilities and track record in cGMP manufacturing of monoclonal antibodies and product development," said Dr. Glenn Albrecht, Dios' president and chief executive officer.
"We believe this collaboration creates substantial opportunities and upside potential for both companies and is a sign of the potential value of our company and our novel therapeutic."