Executive Summary

T CELL SCIENCES' FIRST DRUG R&D AGREEMENT IS WITH PFIZER covering the development of products for the treatment of rheumatoid arthritis and type I diabetes, the company announced in a Sept. 2 press release. Under the terms of the deal, Pfizer will provide $4.5-$7 mil. over three years for product research and development activities based upon T Cell Sciences' proprietary antigen receptor technology. In return for funding R&D in this area, Pfizer will receive exclusive, worldwide right to market any products resulting from the collaboration. T Cell Sciences will receive royalties on sales and, in addition, retain exclusive rights to all diagnostic products that may come out of this research. "This collaboration marks a major step for T Cell Sciences, in that it supplies the financial commitment necessary for us to apply our technology to the promising area of immunoregulatory therapy," said Stephen Chubb, president of Cambridge, Massachusetts-based T Cell Sciences. The agreement with Pfizer is the second for T Cell with a major drug company. Approximately three months ago, the firm entered into a $6 mil., four-year deal with Syntex covering diagnostic products in the infectious disease and cancer areas. Under that agreement, T Cell will contribute 25%, or $1.5 mil., and have co-marketing rights with Syntex. Initially, research efforts will focus on cytomegalovirus. Chief among T Cell Sciences' five currently marketed products is the Cell Free test kit, which quantitatively measures the interleukin-2 receptor in serum. Having completed its first public offering last May, the company said it expects to generate roughly $1 mil. in product revenues for the fiscal year ending April 30, 1987.