British Biotech Signs Marimastat Agreement

British Biotech has signed a $74 million agreement with the Japanese pharmaceutical company Tanabe Seiyaku, to develop and market BB's anticancer agent, marimastat, in Japan.

Tanabe has made an initial payment to BB of $7 million, with another $67 million anticipated, presuming that all goes well with the development and marketing of the product in Japan. Additionally, BB is expected to be paid "substantial" royalties on sales; analysts, reported by the Wall Street Journal, have said that this may mean a royalty of up to 25% (this figure would normally be around 15%) with a 50/50 profit split from the market. Clinical trials with the product are expected to commence in Japan in the near future, probably in 1997. BB will retain development and marketing rights to the product in the USA and Europe as well as in Canada.

Marimastat is currently in Phase III trials in cancer patients in Europe and the USA, with Phase II trials also being undertaken in a range of different cancers.