By Mary Welch
Staff Writer
Titan Pharmaceuticals Inc. and Schering AG entered into a deal worth at least $26 million to develop and commercialize Spheramine, Titans treatment for Parkinsons disease.
In addition, Frankfurt, Germany-based Schering also has a one-year exclusive option to mutually explore other potential therapeutic applications of Titans cell-coated microcarrier (CCM) technology
Under the agreement, Titan, of South San Francisco, and Schering will collaborate on manufacturing and clinical development of Spheramine. Titan will receive funding for development activities as well as reimbursement for certain prior research and development expenses.
Schering will fully fund and manage all future pilot and pivotal clinical studies in exchange for exclusive, worldwide development, manufacturing and commercialization rights. Titan will receive a high-teens royalty on product sales. Schering also retains the right to make an equity investment in Titan upon initiation of pivotal clinical studies.
We believe that this agreement, Titans second with a major pharmaceutical company, further demonstrates Titans ability to add value to a product, partner the product and, most importantly, retain a substantial portion of the products economic potential, wrote analyst Kevin Tang in a research paper released by Deutsche Banc Alex. Brown, of New York.
Spheramine is a novel, cell-based product that consists of cultured, dopamine-producing human retinal pigmented epithelial (RPE) cells. RPE cells produce dopamine, in place of the patients own neurons that no longer perform this function. Spheramine may be useful in restoring neurologic function previously lost in the degenerative disease, the company said.
Spheramine is currently in a Phase I/II trial in late-stage Parkinsons patients that is funded in part by the NIH [National Institutes of Health], said Richard Allen, Titans executive vice president of cell therapy. The trial will last approximately two years, but we expect to get preliminary information by the end of the year.
Spheramine consists of microscopic beads that are coated with normal, human RPE cells. Titans patented CCM technology provides a bead matrix to which the cells attach and grow.
Spheramine is implanted into the brain on microcarriers, which greatly enhance the cells survival in the brain, Allen said.
In a controlled, blinded study in a primate model of Parkinsons disease, Spheramine treatment resulted in a statistically significant (p<0.02) improvement in Parkinsons disease-like symptoms.
Titans stock (AMEX:TTP) closed Wednesday at $26.75, up $4.687.