Company news from Datamonitor
pharmafile | April 16, 2007 | News story | Sales and Marketing |
Avenir plans restructure and ends AZ collaborations
Avanir Pharmaceuticals has said it plans to implement a restructuring plan and has ended two collaborations with AstraZeneca in an effort to cut costs.
Avanir said the decision would better enable it to execute its plan to pursue regulatory approval for the drug Zenvia used in the treatment of involuntary emotional expression disorder.
The restructuring plan has been implemented in order to reduce ongoing operational costs and account for the loss of revenue associated with the two research collaborations. The company said it is targeting to reduce its annual operating expenses to $20 million.
Avanir has agreed with AstraZeneca to end their research collaboration and licence agreement on the Reverse Cholesterol Transport (RCT) enhancing compounds. According to the terms of the agreement, AstraZeneca will return the lead molecule and return or make available all related rights to Avanir.
Avanir anticipates that it will exit from the San Diego research facility later this year and move essential clinical development and support resources to its headquarters.
The company also said it is implementing other cost-saving measures. Avanir has reported that Novartis is to assume all continuing development activities for their Macrophage Migration Inhibitor Factor programme with plans to advance the lead candidate, AVP-28225 towards clinical development. Avanir will receive a milestone payment if the molecule reaches the next stage of development.
Separately, Avanir has received expressions of interest in certain company assets and is engaged in ongoing discussions with multiple parties regarding their potential sale.
Avanir commented that its current goal is to minimise shareholder dilution and obtain sufficient cash to fund all, or substantially all, of the operating expenses for the next two years.
Roche gains DNA technology in CuraGen unit takeover
Roche has acquired 454 Life Sciences, a subsidiary of CuraGen Corporation, for $154.9 million in order to secure the company's sequencing technology.
Roche will pay $140 million in cash, and up to approximately $14.9 million will be received from the exercise of stock options prior to the acquisition.
CuraGen commented that the deal would allow it to gain liquidity on its investment and extend its runway to bring its oncology products to market.
Roche and 454 Life Sciences signed a collaboration agreement in May 2005 that extends until September, 2010, under which Roche Diagnostics has been acting as the worldwide distributor of the Genome Sequencer systems and associated reagents. Through this acquisition, Roche Diagnostics will now obtain access to 454 Life Sciences' future generations of sequencing products and the use of 454 Sequencing in regulated diagnostic applications.
Roche plans to maintain the 454 Life Sciences facility in Connecticut with its 167 employees as a fully integrated part of the Roche Diagnostics organisation.
The transaction, which is subject to certain closing conditions, is expected to close in the second quarter of 2007. Approval by CuraGen shareholders or Roche shareholders is not required for the transaction to be consummated.
Related links:
DNA/RNA Therapies: Translating the Genome into a $1.2bn Market by 2010
