Biogen signs deal to develop Aviptadil

USA-based drugmaker Biogen Idec and Swiss biotechnology company mondoBiotech AG say they have signed an exclusive license and collaboration agreement which covers the development and manufacture of Aviptadil (vasoactive intestinal peptide) as a treatment for pulmonary arterial hypertension.

Aviptadil, which has received Orphan Drug designation for PAH in the USA and Europe, and has already demonstrated its efficacy in a Phase II trial, where it brought about an improvement in physical exercise capacity after three to six months of treatment.

Under the terms of the deal, mondoBiotech is entitled to receive a $7.5 million upfront fee and up to $30.0 million in milestone payments, based on the successful commercialization of the drug in the USA and Europe. The Swiss firm will also be entitled to royalties based on sales. In return, Biogen will take responsibility for all clinical development and manufacturing, and has said that it will finalize its development plan for the product and initiate more clinical work in 2007.