• Aeolus Pharmaceuticals Inc., of Laguna Niguel, Calif., said researchers from National Jewish Medical & Research Center reported that the company's lead compound, AEOL 10150, showed statistically significant protection of lung tissue in animals exposed to 2-chloroethyl-ethylsulfide (CEES; half-mustard). AEOL 10150 was tested, along with 19 other compounds, in the National Institutes of Health-sponsored study to determine effectiveness is protecting lung tissue against edema and hemorrhage resulting from exposure to mustard gas. When given to rats one hour after CEES exposure, followed by a second administration six hours later, Aeolus' drug significantly reduced mustard gas-induced lung edema and hemorrhage, as measured 18 hours after exposure. A second NIH-funded animal efficacy study is expected to start before year-end.

• AlphaRx Inc., of Markham, Ontario, said that preclinical data of Vansolin, a vancomycin compound encapsulated in the company's nanodrug delivery platform for the treatment of nosocomial pneumonia, showed that mice treated with the product in a murine model of pneumonia had better efficacy than vancomycin, and achieved 100 percent survival rate vs. 30 percent in the vancomycin treatment group. Based on those results, Vansolin is on track to enter into human trials in 2008, the company said. The firm said it has four nanoproducts in the development pipeline with an estimated annual market sales potential of more than $6 billion dollars.

• Bavarian Nordic A/S, of Kvistgard, Denmark, received an advance payment of $50 million from the Department of Health and Human Services, as allowed under the RFP-3 contract awarded in April, under which HHS agreed to buy 20 million doses of Imvamune, a third-generation smallpox vaccine, for the strategic national stockpile. Before the end of this year, Bavarian Nordic expects to invoice two additional milestone payments of $25 million each, bringing the total 2007 RFP-3 payment to $100 million. The company also reported that development of Imvamune is proceeding as planned, with Phase III studies in healthy subjects expected to start next year. (See BioWorld Today, April 17, 2007.)

• Biovail Corp., of Toronto, said its subsidiary Biovail Laboratories International SRL signed a deal with Irvine, Calif.-based Pharma Pass II LLC to acquire two early-stage product candidates. The deal gives Biovail worldwide rights to BVF-068 for central nervous system disorders and BVF-247 for cardiovascular indications. In exchange, Pharma Pass gets an undisclosed up-front fee, milestone payments and tiered, single-digit royalties.

• Diamyd Medical, of Stockholm, Sweden, and Sangamo BioSciences, of Richmond, Calif., said that data showed a statistically significant reduction in pain in a preclinical model of cancer pain using a product that combines Sangamo's proprietary zinc finger protein technology with Diamyd's nerve targeting drug delivery system.

• FibroGen Inc., of San Francisco, reported preclinical data on its therapeutic programs targeting hypoxia-inducible factor prolyl hydroxylase (HIF-PH), including data from an allogeneic kidney transplant model showing that a single dose of FG-4497, an HIF-PH inhibitor, reduced perioperative mortality over placebo (53 percent vs. 23 percent survival, respectively) in donor animals pretreated prior to organ harvest. Animals receiving FG-4497 also showed significant improvement in renal function, as early as one day after transplant. The company also reported data from oral HIF-PH inhibitors GF-2216 and GF-4592, which indicated the potential for stimulating erthyropoiesis in anemia. From its connective tissue growth factor program, FibroGen reported data showing that the inhibition of CTGF appeared to affect cellular processes associated with disease progression. Those, and other data, were presented at the American Society of Nephrology Renal Week meeting in San Francisco.

• Geron Corp., of Menlo Park, Calif., said that data showed GRNOPC1, the company's human embryonic stem cell-based therapeutic for spinal cord injury, survives and exhibits durable and robust human remyelination in spinal cord-injured rats for at least nine months following a single injection. The firm said that the data also demonstrated that GRNOPC1, an allogeneic population of cells containing oligodendroglial progenitors that is intended for transplantation into the lesion site of patients with spinal cord injury to induce tissue repair, does not amplify neuropathic pain or the reaction to painful stimuli.

• Invitrogen Corp., of Carlsbad, Calif., and Biosynth AG, of Staad, Switzerland, launched a fluorescence-based culture medium for faster detection of methicillin-resistant Staphylococcus aureus (MRSA). The product is designed for use by hospitals and clinics to monitor and manage MRSA infections.

• Kiadis Pharma, of Amsterdam, the Netherlands, said that the FDA has granted orphan drug status to the firm's lead product, ATIR, as a therapy for immune reconstitution and prevention of graft-vs.-host disease (GVHD) following allogeneic bone-marrow transplantation. ATIR is currently in Phase I/II clinical studies and anticipated to enter clinical Phase III studies in 2008. ATIR is designed to prevent GVHD by selectively eliminating the immune cells that otherwise attack the patient's body. The product also is designed to spare useful immune cells that can fight infections and remaining tumor cells that would allow rapid and safe immune reconstitution post-transplantation.

• Neurotune AG, of Zurich, said it has moved to new laboratory and office facilities at the Biotech Centre in Zurich. The company said the move will help advance the development of its candidate substances for treating diseases of the human central and peripheral nervous system. The company is focused on developing drugs to treat sarcopenia, or age-related muscle atrophy.

• Onyx Pharmaceuticals Inc., of Emeryville, Calif., saw its shares (NASDAQ:ONXX) shoot up $8.68, or 17.6 percent, to close at $58.03 on Wednesday after posting a third quarter profit when analysts had expected a loss. The company reported net income of $555,000, or $0.01 per share, up from a net loss of $20.1 million, or $0.49 per share, in the same period last year. Net revenues on kidney cancer drug Nexavar (sorafenib) were $104.6 million for the quarter and $246.8 million for the nine months ended Sept. 30. Onyx reported $451.2 million in cash, equivalents and securities as of Sept. 30.

• PsychoGenics Inc., of Tarrytown, N.Y., and Cephalon Inc., of Frazer, Pa., entered a drug discovery agreement in which PsychoGenics will screen Cephalon's potential compounds for neuropsychiatric disorders. Specific terms were not disclosed, although each company has the option to advance drug candidates further in exchange for paying milestones and royalties to the other.

• Sangamo BioSciences Inc., of Richmond, Calif., reported preclinical data from its ZFP therapeutic program in nerve regeneration showing that its zinc finger DNA-binding protein activator of vascular endothelial growth factor produced a statistically significant effect on both recovery of hind-limb function and spinal cord tissue preservation in a severe model of spinal cord injury. Data were presented at the neuroscience meeting in San Diego.

• Vermillion Inc., of Fremont, Calif., said its diagnostic test for thrombotic thrombocytopenic purpura (TTP) will be offered by Ohio State University. The test measures levels of the enzyme ADAMTS13, which are lowered in TTP.