P&G ends collaboration on ARYx' ATI-7505

ARYx Therapeutics says that fellow USA-based Procter & Gamble Pharmaceuticals has utilized a one-time 30-day cancellation option linked to the completion of a Thorough QT (TQT) study to end the collaboration agreement between the companies covering the late-stage development and commercialization of ATI-7505, a prokinetic agent in Phase II clinical trials for chronic constipation and functional dyspepsia.

"We are surprised P&G would cancel our collaboration after receiving the results of the TQT study, given that we achieved a successful result at the study's primary endpoint, and are disappointed in their decision to return the rights to ATI-7505 to us. We have been informed by P&G their decision is based on their view of certain commercial and technical criteria, and that the program no longer fits into their future plans. This decision by P&G does not in any way diminish our confidence in ATI-7505, and we believe the results from the TQT study, along with continued positive clinical and preclinical data, will allow moving ATI-7505 into late-stage development once the program is in the hands of a new partner," said Paul Goddard, chief executive of ARYx.

Under the terms of the accord between the firms, the results from the just-completed TQT study qualified ARYx for the Tier 1, or highest, milestone payment from P&G. The collaboration provided the latter with a 30-day option period from the lock of the database for the TQT study to cancel the collaboration or agree to pay ARYx the milestone payment provided for under their deal.