Sanofi signs eye disease R&D deal with OBM; returns Trovax rights after pipeline review

Oxford BioMedica, a UK developer of gene-based medicines, has entered into a new collaboration with Sanofi-Aventis to develop treatments  utilizing its LentiVector gene delivery technology, for ocular diseases.  The move is part of the French drug major's strategic review of its  pipeline which saw it end development of three Phase III-stage drug  candidates, including OBM's therapeutic cancer vaccine Trovax. The UK  firm will seek a new partner for the product. Meanwhile, as part of the  new deal, OBM will receive an upfront payment of $26.0 million and  committed funding of up to a further $24.0 million over three years. In  addition, Sanofi-Aventis has an exclusive option for a worldwide  license to develop and commercialize four ocular products. If  successful, OBM will receive further undisclosed license fees,  milestone payments and royalties on product sales, the terms of which  are consistent with other deals of this size and scope. With GBP51.0  million ($74.8 million) in cash at the end of 2008, the company's  directors estimate that OBM can support operations into 2012.