BioSante Pharmaceuticals signs $10m license option agreement with European pharma company

US company BioSante Pharmaceuticals has signed a material transfer and option agreement with an undisclosed European pharmaceutical company for an option to obtain an exclusive, worldwide license to use BioSante's calcium phosphate nanotechnology (CaP) in the development of a series of allergy products.

The partner company will fund its development of potential products for the treatment of conditions including rhinitis, asthma, conjunctivitis, dermatitis, and allergic gastrointestinal diseases.

Under the terms of the option agreement, BioSante will receive a US$250,000 upfront option payment. If the option is exercised and the parties enter into an exclusive license agreement, BioSante will receive a one-time license fee, annual maintenance payments, milestone payments upon the achievement of regulatory milestones and royalties on commercial sales of any allergy product that is developed using CaP. The various payments may total $10m or more, assuming at least three products are developed.

During the evaluation period, the European company will evaluate CaP's ability to improve current allergy products. The European company may exercise its option to enter into an exclusive license for the use of CaP in allergy products at any time but no later than within 60 days of the end of the 22-month evaluation period.

'The US antiallergy medication market is expected to exceed US$10bn by 2010,' said Stephen M. Simes, president and ceo of BioSante. 'This agreement is very exciting for BioSante, as it acknowledges a new potential use for CaP within this growing market.'