Sankyo of Japan has entered into a $10.5 million agreement with Glycomed of the USA regarding the latter's cell adhesion inhibitor program. Glycomed is developing CAI products for the treatment of inflammatory and allergic diseases and cancer.
The deal gives Sankyo rights to cell adhesion products in the Far East, in return for taking an equity stake in Glycomed, upfront payments and provision of research support. Glycomed will receive an additional $15 million for each compound developed under the agreement. Both companies say they have some lead candidates in this area in preclinical development. Glycomed will undertake initial-stage screening for these compounds, and Sankyo will be responsible for latter-stage screening and toxicity studies. The agreement calls for both companies to pursue research in this area for a period of three years.
Glycomed already has an agreement with Genentech for the development of CAI products in all other regions of the world. Entered into in 1991, this $15 million dollar deal and the Sankyo collaboration could bring funding for the project to $40 million, according to Glycomed. The company is also restructuring its operations, including a reduction of the work force by 30 employees, to halve its cash burn rate down to around $10 million in fiscal 1995.
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