Elan Corp establishes JV with Generex

Elan Corp is to form a joint venture with the Canadian firm GenerexBiotechnology Corp, which the firms say will focus on the application of certain proprietary drug delivery technologies to products that treat prostate cancer, endometriosis and the suppression of testosterone and estrogen. Under the terms of the agreement, Elan will make an initial $5 million equity investment in Generex and both firms will contribute to the funding of the JV.

Specifically, the JV will have non-exclusive licenses to utilize Generex's buccal delivery technology and certain of Elan's systems. Anna Gluskin, the former's chief executive, said that Elan is a world leader in the area of drug delivery technology and the JV will enable Generex to "accelerate efforts to develop additional products in fields we consider extremely promising."

Ivan Lieberburg, Elan's chief science and medical officer, claimed that buccal delivery of large molecule drugs "represents a tremendous opportunity as it will, in our opinion, enhance patient compliance and offer less potential side effects than other drug delivery systems."