Celera sells Cathepsin program to Schering

USA-based drugmaker Celera Genomics, which is owned by Applera, says that Germany's Schering AG has acquired its cathepsin S inhibitor small-molecule drug program for the treatment of autoimmune diseases.

The financial terms of the deal include an upfront cash payment of $5.0 million, half of which is payable to Celera upon closing, and the remaining half due upon the successful transfer of all cathepsin assets, which is expected to be completed within four months, subject to receipt of any necessary approvals. Celera noted that, if this program meets all developmental and commercial milestones and results in drugs that are approved and commercialized in key geographical markets, it may generate up to $360.0 million, as well as percentage royalty payments up to the low double-digits based on annual sales of any drugs commercialized from the program.

Celera's cathepsin S inhibitor, CRA-028129, entered a Phase I trial in September 2005 in a single center study being conducted at the Christchurch Clinical Studies Trust in Christchurch, New Zealand.