MGI GRANTS SALAGEN RIGHTS TO KISSEI

MGI Pharma of the USA has granted Kissei Pharmaceutical an option to acquire a license for all rights to develop, manufacture and market Salagen (pilocarpine) in Japan. The agreement allows for a six-month option period during which Kissei will explore issues related to specific patient markets and regulatory requirements for the product in Japan.

Salagen was approved in the USA in March as a treatment for radiation-induced dry mouth (xerostomia) in head and neck cancer patients. MGI is also studying the drug's ability to treat chronic dry mouth caused by Sjogren's syndrome, an autoimmune disease which leads to gradual but progressive destruction of the salivary glands.

As part of the agreement, Kissei will purchase a $3.5 million equity stake in MGI Pharma, which will be used to fund further development of the product, said MGI. Patient enrollment for an ongoing Phase III Sjogren's syndrome trial is scheduled to be completed by the end of 1995. In addition to being sold by MGI, the product is currently being registered throughout Europe by MGI's European partner, Chiron Corp, under a royalty-bearing license.