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AMERICAN HOME PRODUCTS LICENSES INTO AIDS DRUG DEVELOPMENT

Executive Summary

AMERICAN HOME PRODUCTS LICENSES INTO AIDS DRUG DEVELOPMENT: First AHP product in clinicals will be AS-101. AHP announced March 16 that it has acquired exclusive worldwide rights to AS-101 via a license with a joint venture of National Patent Development Corp. and Bar-Ilan University of Israel. AHP is assuming responsibility for development and marketing of the compound. AHP noted that an IND has been approved for study of the drug in AIDS patients. Clinical trials with AS-101 are expected to begin at an undisclosed "major medical center" in New York City within a month to six weeks. AHP says that human studies in France, Israel, and Mexico are ongoing in AIDS and "certain forms of cancer." The National Institute of Allergy & Infectious Diseases is also interest in AS-101. NIAID said it is "actively considering studying" the immunomodulator. The final protocol for a Phase I dose ranging study in AIDS patients has been approved and an IND is "in the process" of being filed, NIAID said. Under the terms of the agreement, AHP explained, the joint venture company, NPDC-AS101, will manufacture "the principal ingredient of the drug and American Home Products will make upfront payments, additional progress payments and pay a royalty on net sales."

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