Wyeth pact with Trubion worth up to $800M

Drug major Wyeth has entered a strategic alliance with closely-held fellow USA-based Trubion Pharmaceuticals for the discovery, development and commercialization of novel biopharmaceutical agents for the treatment of inflammatory disease and cancer using the latter's Small Modular Immunopharmaceutical technology.

As part of the deal, Wyeth and Trubion will collaborate on the development and commercialization of CD20-targeted therapies including TRU-015, a novel SMIP compound currently in Phase II clinical development for rheumatoid arthritis. Under the terms of the accord, Trubion, which will retain option rights for US co-promotion of CD20-targeted therapies, has received an initial $40.0 million from Wyeth.

The agreement also provides for additional payments to Trubion on the achievement of certain development milestones, royalties on product sales and a stock purchase when the latter makes a qualified initial public offering. If all milestones are achieved, total payments to Trubion could exceed $800.0 million, excluding royalties and co-promotion fees.