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Efforts will focus on targeting cellular energy metabolism
January 31, 2014
By: Kristin Brooks
Managing Editor, Contract Pharma
Edison Pharmaceuticals has entered into a strategic alliance with Dainippon Sumitomo Pharma Co., Ltd. (DSP) for the development of drugs targeting cellular energy metabolism, in a deal with a potential value of $4.3 billion. The R&D program will focus on the characterization of the redox control energy system, which is critical to the generation and regulation of cellular energy metabolism. The companies maintain that the cellular redox “network” is an untapped reservoir of new drug targets, especially for organs such as the brain. DSP and Edison will work together to discover, characterize, and translate drugs into clinical development. DSP will have certain development and commercialization rights in Japan and North America to jointly discovered drugs, and Edison will receive $10 million upfront and $40 million in R&D support. DSP will also fund the development of 10 new jointly discovered drugs through IND filing and expand its rights to EPI-589, currently in Phase I development, to include North America. Edison will be eligible to receive between $30 million and $105 million per indication for the successful development of EPI-589 in North America, and between $10 million and $30 million per indication for jointly discovered compounds in Japan and North America, as well as $3.9 billion in commercial milestones and royalties on sales. DSP will also invest $50 million in Edison through a preferred stock purchase agreement, and at the discretion of Edison, may invest an additional $50 million within a five-year period. “The broadening of our partnership with Edison reflects the success we have had to date in our current collaborative development programs. Compelling data suggest that the mitochondria and redox regulation play a central role in a variety of disease mechanisms,” said Hiroshi Noguchi, Ph.D., chief scientific officer of DSP. “As Edison is a leader in redox drug development, we see the highly integrated alliance structure as a way to bring our companies closer together in order to leverage our mutual strengths, make new and important discoveries, and bring valuable new drugs to the marketplace for critical diseases with unmet medical need.”
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