Hoechst Roussel In Canadian Deal

Hoechst Roussel Canada and the US-based Hoechst Roussel Pharmaceuticals have signed a five-year R&D alliance with Allelix Pharmaceuticals of Canada. Hoechst Roussel Pharmaceuticals will invest $7 million in the company, and Allelix will receive annual R&D funding as well as milestone payments, thought to be worth C$43 million ($30.3 million).

The alliance will focus on the discovery and development of drugs for psychiatric disorders, especially schizophrenia, where the emphasis will be on the dopamine and serotonin receptors in the central nervous system. Hoechst Roussel Canada will have exclusive rights to develop, make and sell products resulting from the alliance, and will pay Allelix royalties on any products which will be developed.

The two companies have the right to codevelop and copromote products in Canada and certain northern European countries. Allelix retains the right of first refusal on copromotion in the USA. Hoechst Roussel's president, Newton Williams, said the alliance reflects the company's commitment to increase R&D involvement in Canada.