Genentech & Alteon Collaborate On Diabetes Therapy

Genentech and Alteon have entered into a series of agreements for thecontinued development and marketing of the latter's lead compound pimagedine, an advanced glycosylation end-product formation inhibitor, currently in Phase II clinical trials, to treat kidney disease in diabetic patients. The deal is estimated to be worth up to $200 million to Alteon, excluding royalties.

Genentech said it will buy $15 milion of Alteon common and preferred stock, and will fund development costs for pimagedine by investing up to $48 million in Alteon's preferred stock, initially paying $16 million in January next year, with future investments to follow. Alteon will also receive an additional $50 million upon meeting regulatory milestones.

All development activities in the USA will be jointly managed by a steering committee, while Genentech will advise Alteon on development and marketing outside the domestic field.