Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

AGOURON GUARANTEED AT LEAST $24 MIL. FROM JAPAN TOBACCO R&D DEAL for "the joint discovery, development and commercialization of novel therapeutic drugs which act on key proteins related to the human immune system." The R&D collaboration, announced Dec. 17 by San Diego-based Agouron Pharmaceuticals, includes research payments and an equity investment from Tokyo-based JT that will total $24 mil. at a minimum and could add up to over $30 mil. during the life of the agreement. Agouron would not name specific disease areas to be researched but said the effort will involve "new protein targets" that the company has not approached before. AIDS and cancer, which are the focus of the company's current pipeline, are not among the targeted therapeutic areas, Agouron said. The agreement includes the purchase by JT for nearly $3 mil. of 155,844 shares of newly-issued Agouron common stock at a price of $19.25 per share, a premium of approximately 45% over the stock's recent trading price of $13.25. The stock purchase gives JT a 2% equity stake in Agouron. Under the agreement, the stake cannot be expanded to more than 2.25% and is protected against dilution should Agouron issue more stock. In addition to the stock purchase, Japan Tobacco will make semi-annual payments totaling $21 mil. over the next three years. "If certain technical progress is achieved by the R&D effort," Agouron said, total payments by JT after three to four years could amount to "more than $28 mil." Under the agreement, JT will lead development and commercialization efforts in Asia, while Agouron will lead the effort in Europe and North America. Agouron and JT "will have co- exclusive rights to market jointly-developed products in all countries of the world," meaning that all products resulting from the collaboration "will be jointly owned," with each firm having the option to co-promote the products in the other's territory, Agouron said. The agreement is Agouron's third with a major pharmaceutical firm. Schering-Plough is working with Agouron to rationally design a class of oncology drugs targeting the ras oncogene ("The Pink Sheet" April 29, 1991, T&G-6). Eli Lilly holds a 5% equity position in Agouron as a result of a 1988 R&D agreement covering AIDS and cancer ("The Pink Sheet" April 25, 1988, p. 19). Agouron's AG-85 candidate for treatment of psoriasis was tested in one pilot study completed in April of this year. Based on the results of that study, a newer, higher-strength formulation of the topical inhibitor of the enzyme thymidylate synthase (TS) will be used in a 20-patient pilot study beginning in January. The company's lead solid tumor treatment candidate, AG-337, a lipophilic TS inhibitor, entered a Phase I study in the U.K. in November. An IND for another potential solid tumor treatment, AG- 331, should be filed by year-end and a Phase I trial should begin in early 1993 at the University of Southern California, Agouron said.

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth




Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts