VASTox' Dextra signs development deal with US biotech

UK-based VASTox' recently-acquired unit Dextra, a carbohydrate chemistry specialist, has signed a $450,000 development deal with an unnamed US biotechnology firm. Dextra is using its carbohydrate expertise to develop a cost-effective manufacturing route for the latter's undisclosed product, which is in Phase III testing and used in medical procedures, with approval anticipated in late 2009 and a launch in 2010. Under the terms of the deal, VASTox is eligible for payments of L230,000 ($454,649) spread across 2008 and 2009, although the bulk is due this year. The company is entitled to a 5% royalty on annual sales, which could start as early as 2009, as a result of pre-launch stocking orders.