AstraZeneca signs $240m asthma deal with UK biotech
pharmafile | June 12, 2014 | News story | Sales and Marketing | AZ, AstraZeneca, COPD, SNG001, Synairgen
UK-based Synairgen has signed a global licence agreement with fellow British native AstraZeneca for its experimental lung drug SNG001.
The treatment is an inhaled interferon beta (IFN-beta), and is currently in early-stage clinical development for treating respiratory tract viral infections in patients with severe asthma.
AstraZeneca will pay development and commercial milestone payments of up to $232 million, including an upfront payment of $7.2 million, plus tiered royalties escalating to a mid-teens percentage of sales. It will also meet all future costs.
AZ says at the beginning of 2015 it will commence a Phase IIa study in patients with severe asthma, building on available clinical data from an initial Phase lla trial in a broad asthma population.
SNG001 also provides the opportunity to expand the clinical programme in other pulmonary diseases, including chronic obstructive pulmonary disease (COPD).
The treatment works by having a broad spectrum anti-viral effect and acts by delivering IFN-beta to the lungs when an infection, such as a common cold, begins to develop in the upper airways.
Inhaled IFN-beta boosts the anti-viral defence and combats the spread of the virus, preventing or reducing the severity of exacerbations.
AZ has a long history in respiratory treatments, with one of its biggest selling being its Symbicort brand for asthma and COPD, bringing in $3.5 billion in sales last year.
The drug is now succumbing to generic erosion in Europe however, and AZ will hope to shore up its pipeline in this area for future growth.
Maarten Kraan, head of respiratory, inflammation and autoimmune innovative medicines at AstraZeneca, says: “Respiratory disease is a core therapeutic area for AstraZeneca, and a key growth platform for the company.
“Our approach includes addressing associated complications that patients experience, as well as developing treatments for the underlying disease. SNG001 is an innovative and targeted therapy that has, if successful, the potential to offer a step-change in the treatment of severe asthma, and possibly COPD.”
Synairgen, based on the UK’s south coast at a Southampton hospital, has limited funds and only the capability to produce drugs to an early stage, and therefore relies on deals such as this one from AZ to help develop the drug through to a marketing application.
Richard Marsden, Synairgen’s chief executive, adds: “We’re delighted that this truly innovative programme, discovered at the University of Southampton and developed by Synairgen, will be taken forward by AstraZeneca.
“With its strong research focus and extensive experience in respiratory disease, AstraZeneca’s commitment to developing novel medicines for patients with asthma and COPD makes them the ideal partner for SNG001.”
Independent strategy
This new deal, one of many for AZ over the past year, comes several weeks after the firm successfully rejected four takeover bids from US giant Pfizer in a deal potentially worth around $118 billion.
AZ’s chief executive Pascal Soriot and its chairman Leif Johansson said repeatedly throughout the resulting to-ing and fro-ing that the firm would pursue an independent strategy.
This was evident from its oncology drug showcase at this month’s ASCO cancer conference in Chicago, where it made a very public announcement on the strength of its cancer medicine pipeline. This latest deal will only add to its independent stance.
Meanwhile, Pfizer has for the first time spoken out publically about why it thinks the AZ deal fell through in late May.
Frank D’Amelio, chief finance officer of the firm, told reporters that Pfizer had a ‘strong hand’ on AstraZeneca, but that the sticking point was the price which simply wasn’t high enough for AZ’s board.
He declined to say whether it would make a fresh approach for the Anglo-Swedish company. Pfizer could return to AstraZeneca with a fresh offer in November, after the six-month ‘cooling off’ period mandated by the UK’s business takeover rules.
But there is the possibility that new talks could begin as early as August should AstraZeneca’s shareholders want to re-start negotiations.
AstraZeneca’s share price jumped around 1.5% to £44.50 on Wednesday afternoon after Pfizer’s boss blamed price for the collapse of its attempted takeover. Shares eventually closed 1.2% up at £44.
Ben Adams
Related Content
NICE recommends Benralizumab for Rare Form of Vasculitis
The National Institute for Health and Care Excellence (NICE) has recommended AstraZeneca’s benralizumab (Fasenra) as …
NICE approves AstraZeneca’s dual immunotherapy for advanced liver cancer
AstraZeneca has received a positive recommendation from the National Institute for Health and Care Excellence …
Purpose and people: the enduring power of brand and the evolution of employer identity
Two decades ago, terms like purpose and people were rarely at the forefront of branding …
