Microcide/J&J Collaborate On Antibiotic Research

Privately-owned US antibiotic discovery firm Microcide Pharmaceuticals has signed a major research and licensing deal with Johnson & Johnson subsidiaries Ortho-McNeil and the R W Johnson Pharmaceutical Research Institute, aimed at developing new antibiotics to solve the serious clinical problems caused by infections from increasingly-resistant strains of Gram-positive bacteria.

The research team will focus on certain proprietary Microcide technologies, including its advanced Gram-positive medicinal chemistry program, as well as novel target identification and screening systems. RWJPRI will make available complementary antibiotic discovery technology. Most of the discovery and early preclinical development will be conducted at Microcide, while RWJPRI will be responsible for clinical development.

Under the terms of the agreement, Microcide will receive a $3 million up-front cash license fee concurrent with a $5 million equity investment by J&J's investment subsidiary. Ortho-McNeil will have worldwide marketing rights and, on agreement with Ortho-McNeil, Microcide will conduct copromotion activities on the collaboration products in North America.