BioAlliance Pharma acquires European commercialisation rights to pafuramidine

French company BioAlliance Pharma has entered into an exclusive licensing agreement with Immtech Pharmaceuticals covering the European commercialisation rights to pafuramidine maleate.

The patented, orally administered new chemical entity is currently in Phase III clinical trials in the US for two indications: the treatment of Pneumocystis Pneumonia (PCP) in AIDS patients; and human African trypanosomiasis (sleeping sickness). Pafuramidine has orphan designation in the US. BioAlliance has also negotiated the grant of an option to sell pafuramidine in Europe for the prevention and treatment of malaria in travellers.

In return, Immtech will receive an initial license fee of US$3m (Euro 2m) and up to an additional $13m (€8.9m) if pafuramidine achieves European regulatory approval and pricing milestones. Immtech will receive significant royalties on sales and may also earn two additional milestone payments linked to the turnover generated.

Furthermore, if BioAlliance elects to exercise the option to commercialise pafuramidine for malaria prophylaxis, it will start to share the clinical development costs for a Phase III trial which is due to start shortly. Marketing approval in malaria will trigger the payment of additional regulatory, pricing and sales milestones to Immtech, plus royalties on sales.

"We are very keen to gain access to pafuramidine and work closely with Immtech to make a significant impact on PCP, a very serious disease," said Dominique Costantini, ceo of BioAlliance.

"The compound displays particularly valuable activity in resistant strains and constitutes our first strategic acquisition - one that fits perfectly with our existing portfolio of Loramyc, Doxorubicin Transdrug, and Acyclovir Lauriad, since all these products are either already approved for marketing or in Phase III trials in oncology or infectious diseases."