Arrow/Novartis Collaboration

From the Arrow press release:

Arrow Therapeutics raises major part of 25 million pound venture capital funding
"London 30th June 05, Arrow Therapeutics today announced a deal with Novartis, involving the development and commercial sale of its small molecule inhibitor A60444 for the treatment of Respiratory Syncytial Virus. Under the terms of the agreement Novartis will undertake most of the further development and all commercialisation activity for the compound which is currently undergoing Phase II clinical trials. All future work on the project will be funded by Novartis.

RSV is a major threat to the very young, the elderly and the immuno-compromised and with no other effective treatment available represents a major unmet medical need. Although best known as an infection in babies where it causes severe bronchiolitis, a recent editorial in the New England Journal of Medicine has also stressed its significant effects in the elderly. Currently, the only widely used intervention is MedImmune’s monoclonal antibody, Synagis’ which is used to prevent infection in high risk infants. However, this antibody is used in a small percentage of babies and although it is only effective given prior to infection (unlike a treatment therapy) it has reached sales of ‘blockbuster’ proportions and proven the RSV market.

Under the terms of the deal Arrow will receive an upfront payment of $10 million in addition to milestone payments of up to $217 million for success in the ongoing and future development and commercialisation of the product, and royalties on product sales appropriate for a compound in Phase IIa trials. Rights to back up compounds to A60444 are included in the deal plus a right of first negotiation on follow-up compounds with different chemistry, currently under development by Arrow."