• Alfacell Corp., of Bloomfield, N.J., entered an exclusive licensing and distribution agreement with Genesis Pharma SA, of Athens, Greece, for the commercialization of Onconase (ranpirnase), which Alfacell is testing in a confirmatory Phase IIIb trial in unresectable malignant mesothelioma. Under the terms, Alfacell grants rights to Genesis for that indication, as well as any future oncology indications, to market and distribute Onconase in eight countries in Southeast Europe, including Greece, Cyprus, Bulgaria, Romania, Slovenia, Croatia, Serbia and the Former Yugoslavian Republic of Macedonia. Specific financial terms were not disclosed, but Genesis agreed to fully fund all commercialization activities and certain post-marketing studies.

• AVI BioPharma Inc., of Portland, Ore., and Ercole Biotech Inc., of Research Triangle Park, N.C., signed a cross-license and collaboration agreement to identify and develop drugs that direct the splicing of messenger RNA to treat a variety of genetic and acquired diseases. Each party is granting the other rights under their respective patents for RNA splice-altering technologies. AVI and Ercole will each select a set of specific gene targets and take the respective lead in investigating the potential therapeutic effects of shifting splicing of those genes.

• CollaGenex Pharmaceuticals Inc., of Newtown, Pa., signed a license and supply agreement with MediGene AG, of Martinsried, Germany, for marketing rights to Oracea, CollaGenex's flagship dermatology product for the systemic treatment of rosacea, in the European Union, certain contiguous countries and Russia. MediGene receives the right to manufacture, register, market and sell Oracea in those territories, in exchange for an up-front fee of $5 million upon signing of the agreement, as well as an additional $7.5 million in milestone payments upon achieving certain annual sales thresholds. CollaGenex also will receive a royalty of 12 percent of annual net sales up to $10 million and 15 percent of annual net sales in excess of $10 million.

• Genta Inc., of Berkeley Heights, N.J., reduced its work force by 35 percent, or 34 employees, in a restructuring move to conserve cash and to focus on its oncology operations. That action followed last week's non-approvable letter for Genasense (oblimersen concentrate solution for injection) in chronic lymphocytic leukemia. The company is reviewing options for its response to the decision. It also is awaiting European approval on a pending application for Genasense in advanced melanoma. Genta ended the third quarter with cash and cash equivalents of about $40 million. The staff reduction will result in severance costs of about $700,000. (See BioWorld Today, Dec. 18, 2006.)

• Labopharm Inc., of Laval, Quebec, submitted a complete response to the approvable letter issued by the FDA for the once-daily, controlled-release opioid analgesic tramadol, and has appealed the action taken in the approvable letter using the formal dispute resolution process. (See BioWorld Today, Oct. 2, 2006.)

• MedImmune Inc., of Gaithersburg, Md., licensed its proprietary reverse genetics intellectual property to CSL Ltd., of Melbourne, Australia, to support the development of new human seasonal and pandemic influenza vaccines. MedImmune will receive an undisclosed up-front payment and has the potential to receive royalties on any vaccine stockpiles or other product sales using the reverse genetics technology.

• Medivir AB, of Stockholm, Sweden, and Presidio Pharmaceuticals Inc., of San Francisco, signed license agreements for alovudine (MIV-310), Medivir's Phase II compound against multidrug-resistant HIV, and MIV-410, a preclinical compound that has a novel mechanism of action against HIV and also is efficacious against cytomegalovirus. Presidio will be responsible for the further development of alovudine and MIV-410. Medivir will receive equity in Presidio, milestone payments of as much as $75.2 million and royalties on sales. Medivir has retained the right to market and book sales of developed products in the UK and Nordic countries, and has an option for the same in the remaining countries of the European Union.

• MorphoSys AG, of Martinsried, Germany, said the antibody collaboration with Pfizer Inc., of New York, slated to end in 2008, has been extended until the end of 2011. Pfizer has the option to begin new therapeutic antibody projects with MorphoSys resulting in an increased level of programs to be performed within the collaboration. As a result, the potential value for MorphoSys in research funding and potential developmental milestone payments increases to more than $100 million, not including royalties. The extension triggers a one-time payment from Pfizer to MorphoSys. Further financial details were not disclosed.

• RheoGene Inc., of Norristown, Pa., and Intrexon Corp., of Blacksburg, Va., both privately held, disclosed a merger plan. The combined firm will focus on gene-based therapies, take Intrexon's name and will be based in Blacksburg.