Genelab regains Japan Prestara rights

California, USA-based Genelabs Technologies says that it has regained full development and licensing rights in Japan for its investigational lupus drug Prestara (preasterone; GL701), under the terms of a termination agreement with Japan's Mitsubishi Tanabe Pharma Corp.

Genelabs and Tanabe Seiyaku, a predecessor to Mitsubishi Tanabe, signed their collaboration and license deal in January 2004. This provided that Tanabe was responsible for conducting all development work and obtaining regulatory approval for Prestara in Japan. Under the terms of the accord, Genelabs received an initial $2.0 million non-refundable license fee. In addition, $10.0 million of milestone payments were to be made on the achievement of pre-determined development goals. No additional milestones were received by Genelabs during the term of the agreement. Mitsubishi Tanabe continues to own common stock in the US company which was purchased for $2.6 million in connection with the collaboration and license agreement.

Under the terms of the termination agreement no payments are to be made by either party.