Wyeth Functional Genomics Deal With CAT Valued At $16 Mil.

Wyeth-Ayerst will pay Cambridge Antibody Technology $4 mil. per year in research funding for up to four years as part of a collaboration aimed at applying CAT's functional genomics technologies to Wyeth targets.

Under a deal announced March 30, Wyeth will pay a minimum of $12 mil. as part of a three-year contract, extendable to four years or $16 mil., to apply CAT's ProAb and ProxiMol functional genomics technologies to Wyeth's gene sequence targets. The resulting data will be placed in CAT's Continuity bioinformatics software, which will be installed at Wyeth's research facilities in the U.S.

"If Wyeth develops antibody therapies, we will get license fees, milestones, and royalties," CAT CEO David Chiswell explained during a March 30 teleconference. CAT estimated the total potential value of the deal at $70 mil.

The Wyeth-CAT partnership also involves screening and developing "a broad portfolio of human antibody-based drug candidates" emanating primarily from Wyeth's gastrointestinal research over the past five years, Chiswell explained.

In the GI area, Wyeth markets the proton pump inhibitor ulcer treatment Zoton (lansoprazole) in Europe, and submitted an NDA to FDA in June for the PPI Protonix (pantoprazole), licensed from Byk Gulden.

"This is the first big ProAb/ProxiMol deal that we've done," Chiswell commented. "It validates long-term product development options - it gives us more targets and a real collaborator."

The CAT exec noted that Wyeth has contributed targets which "look like good targets to develop antibody drugs." The targets under consideration could be used for "quite broad therapeutic areas," including autoimmunity, inflammation, and cancer.

The collaboration with Wyeth will involve equal sharing of target and product validation costs. Both companies will also have equal opportunities to select candidates from the pool of targets for product development.

"If CAT takes a product forward and seeks a partner, Wyeth will have a first right of negotiation to become that partner," Chiswell added.

Wyeth's previous target research collaborations include a 1996 alliance with Millennium valued at $90 mil. The deal yielded two CNS genes of interest to Wyeth. Millennium also forwarded five antibacterial drug targets for screening to Wyeth under a separate $20 mil. agreement signed in 1997. Wyeth has also worked with ChemGenics on identification of new antibacterial drug targets (¹ (Also see "AHP/Monsanto Merger Will Reduce Impact Of Pharmaceuticals On AHP" - Pink Sheet, 8 Jun, 1998.)).

Based in Melbourn, U.K., CAT has approximately 150 employees. The company's business strategy is to exploit "fully human antibodies" and "the speed and capacity with which antibodies can be isolated."

CAT says that its use of fully human antibodies may help in minimizing the risk of immune reactions - "one of the key problems that has held back the development of antibody-based drugs."

The company will seek partners for Phase III studies and marketing of the compounds as part of its business strategy "to conduct studies no further than the end of Phase II clinical trials." CAT plans to initiate "three to four clinical programs per year from the year 2000."

CAT is conducting three Phase I/IIa programs with its antibody compounds. In collaboration with BASF, CAT is studying the human anti-tumor necrosis factor-alfa compound D2E7 in rheumatoid arthritis. CAT is also pursuing indications in fibrosis after retinal detachment and glaucoma with the human anti-transforming growth factor-beta-2 compound 6B1.

CAT's deal with BASF covers the development of up to six drug candidates. The collaboration has thus far resulted in preclinical testing of an antibody that binds with and neutralizes interleukin-12 in vitro, CAT says.

CAT also has product development collaborations with Icos to develop antibody therapies for conditions such as inflammation, cancer, and allergy; with Obesys to isolate and develop antibodies that bind with and destroy human adipocytes; and with Mitsubishi Chemical for inflammatory disorders and cancer. CAT also has technology licensing agreements with Lilly, Pfizer and Genentech.