Zentaris to cover cancer Spectrum

Zentaris, a subsidiary of Canadian biotech company Æterna and Spectrum Pharmaceuticals, an oncology-focused pharmaceutical company based in the United States, have entered into a licensing and collaboration agreement on a fourth generation LHRH antagonist D-63153 with the potential to treat hormone-dependent cancers as well as benign, proliferative disorders.

The agreement comes on the heels of Æterna Zentaris regaining worldwide rights to D-63153 from Baxter Healthcare as a result of recent organisational changes and restructuring at Baxter, and following a mutual understanding between the two companies aimed at maximising the value of D-63153.

Under the terms of the agreement, Æterna Zentaris granted to Spectrum an exclusive license to develop and commercialize D-63153 for all potential indications in North America (including Canada and Mexico) and India.

Zentaris received an upfront payment which included cash and equity, at signature, and is eligible to receive payments upon achievement of certain development and regulatory milestones, in addition to royalties on potential net sales. It also retains exclusive rights to the rest of world and will share with Spectrum upfront and milestone payments, royalties or profits from potential sales in Japan. Financial details were not disclosed.

Professor Dr. Jurgen Engel, chief operating officer of Æterna Zentaris said: 'The agreement allows for us to generate near- and mid-term revenue, while also providing for shared upside from successful commercialisation of the product. Zentaris' and Spectrum's complementary skills and experience should enhance and expedite the development of this promising compound.'

Dr Luigi Lenaz, president of oncology division, Spectrum Pharmaceuticals said: 'We plan to expand the development of D-63153 by initiating additional clinical trials in one or more indications as soon as feasible, possibly before the end of 2004.'