Kosan Biosciences, Inc. has established a worldwide license agreement with Pfizer for its motilin agonist program. The agreement includes Kosan’s clinical candidate, KOS-2187 and related compounds. KOS-2187 has demonstrated improved gastric emptying in preclinical studies and may have therapeutic benefit in gastrointestinal diseases such as gastro- esophageal reflux disease (GERD), or diabetic gastroparesis (delayed gastric emptying).

Under the terms of the license agreement, the two companies will file regulatory documents and initiate a Phase I trial of KOS-2187. Pfizer will be responsible for all development, regulatory and commercial activities related to the motilin agonist program. Kosan will receive an upfront payment of $12.5 million and will be eligible to receive as much as $250 million for the successful development and commercialization of KOS-2187 for one indication, as well as royalties on worldwide sales.

“We have achieved a major corporate goal by partnering our gastrointestinal-focused motilin agonist program with Pfizer,” said Robert G. Johnson, Jr., M.D., Ph.D., president and chief executive officer of Kosan. “Kosan is focused on advancing novel cancer therapeutics, as evidenced by our advancing Hsp90 inhibitor and epothilone oncology programs which are progressing into later-stage clinical development. Our motilin agonist program is the most promising polyketide-based, non-oncology asset to emerge from our proprietary discovery platform. This agreement with Pfizer further underscores Kosan’s ability to convert technology into valuable product opportunities.”

“Pfizer believes that the mechanism of action of KOS-2187 and its demonstrated activity as a prokinetic agent are significant indications of its potential as a new approach for the treatment of gastrointestinal diseases,” said James Bristol, senior vice president, Pfizer World Wide Discovery Research. “We believe that KOS-2187 is a valuable addition to Pfizer’s GI portfolio.”