Magainin And SB In Cytolex Deal

Magainin Pharmaceuticals has entered into an agreement with SmithKlineBeecham, under which SB will market and distribute Magainin's peptide antibiotic Cytolex (MSI-78) in North America.

Cytolex, for the treatment of diabetic foot ulcers, is currently undergoing its second round of Phase III trials. The first, completed in September 1996, compared Cytolex with ofloxacin in approximately 500 patients. Data demonstrated that at days seven, 10, 14 and 28, Cytolex was "as effective as" ofloxacin in treating diabetic foot ulcers. Results of the second trial are expected to be announced in first-quarter 1997, and Magainin plans to file a New Drug Application for Cytolex later this year, said a spokesman for the company.

Magainin will supply Cytolex to SB for commercialization, and will receive a royalty on sales. SB will also provide a percentage of the development expenses for additional indications including ulcers, skin infections and surgical wounds, said the spokesman. SB will also make a $5 million upfront payment to Magainin, and may make additional milestone payments of up to $27.5 million. Furthermore, SB has the option to negotiate for the rights to another Magainin drug, currently in development.