Bachem to develop ThGRF with TheraTechnologies

Switzerland's Bachem has entered into a collaborative agreement withCanadian firm TheraTechnologies to develop and manufacture the latter's growth hormone releasing factor peptide analog TH 9507 (also known as ThGRF), currently in various Phase II clinical trials for the treatment of muscle wasting observed in chronic obstructive pulmonary disease and hip fractures, as well as for immune dysfunction and sleep disorders.

Bachem has been producing the peptide for TheraTechnologies for around three years to support preclinical and early clinical development of the drug, but the new collaboration will focus on developing a cheaper synthesis route.

No financial terms of the agreement have been published, but analyst Ivo Staijen of Sarasin, quoting Bachem management, notes that the total value of the development deal is around $7 million, spread out over the 2002-2004 timeframe. "Most interestingly," said Dr Staijen, "Bachem has secured a portion of the future annual production" should TH 9507 reach the market. A first launch could take place by the end of 2004 at the earliest, according to Bachem estimates.