Biogen Idec and mondoBIOTECH AG have signed an exclusive collaboration and license agreement for Biogen Idec to develop, manufacture and commercialize Aviptadil, a clinical compound for the treatment of Pulmonary Arterial Hypertension (PAH).
Under terms of the agreement, mondoBIOTECH will receive a $7.5 million upfront payment and as much as $30 million in milestones for successful development and commercialization of Aviptadil in PAH in the U.S. and Europe, as well as royalty payments on commercial sales. Separately, Biogen intends to make a minority equity investment of $5 million in mondoBIOTECH during a foreseen initial public offering.
"This in-licensing opportunity supports our strategic initiative to expand into new therapeutic areas where we can leverage our global capabilities in serving specialized medical markets with high unmet need," said James C. Mullen, Biogen Idec's president and chief executive officer. "Aviptadil has the potential to be an important therapy in treating pulmonary arterial hypertension, an often deadly disease with few effective treatment options for patients. We look forward to developing Aviptadil for these patients and building on the strong work initiated by mondoBIOTECH."
"Biogen Idec is a premier biotechnology partner with a global structure, excellent clinical development and commercialization capabilities, and a strong record of accomplishments. We are excited to enter this collaboration which is a validation for our business model addressing fatal and rare lung diseases," said Fabio Cavalli, chief executive officer of mondoBIOTECH.
Under the agreement, Biogen will be responsible for the global manufacturing, clinical development, regulatory approval and commercialization of Aviptadil. Biogen plans to finalize the development plan for Aviptadil and begin additional clinical work in 2007.
Biogen, mondoBIOTECH Sign License Agreement
Published September 14, 2006
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