Washington Editor

MedImmune Inc. is paying Critical Therapeutics Inc. $12.5 million in up-front fees for the companies to co-develop drugs targeting a pro-inflammatory cytokine to treat severe inflammatory diseases.

For Critical Therapeutics (CTI), a young privately held company, the deal represents validation of its technology centered on a cytokine called HMGB-1, Paul Rubin, president and CEO of the Cambridge, Mass.-based company, told BioWorld Today.

HMGB-1 can be found wherever tumor necrosis factor (TNF) is found in the body. "But we believe HMGB-1 is a better target for acute severe inflammatory disease, which is an area that the anti-TNF therapies to date have not been very successful," Rubin said. He described CTI's technology as antagonizing HMGB-1.

CTI licensed the technology from one of its founders, Kevin Tracey, of the Long Island Research Institute. Tracey discovered HMGB-1, one of many hormone-like proteins secreted by different cell types that regulate the intensity and duration of an immune response. It is expressed at high levels beginning about 12 to 72 hours after an inflammatory reaction of the immune system has been initiated and at about the same time tissue damage is believed to occur, CTI said.

"The idea behind the collaboration is to accelerate the development of this technology," Rubin said. "I know MedImmune is very committed to this, so I think both companies will be aggressive in getting this through the various clinical stages."

Jamie Lacey, spokeswoman for Gaithersburg, Md.-based MedImmune, told BioWorld Today that CTI's anti-HMGB-1 technology is a great fit with MedImmune's expertise in antibody technology and in anti-arthritic anti-inflammatory diseases.

In a prepared statement, James Young, MedImmune's president of research and development, said elevated levels of HMGB-1 are found in many acute and chronic diseases, including rheumatoid arthritis, inflammatory bowel disease, hemorrhagic shock, sepsis, endotoxemia and acute lung injuries.

Neither company would discuss specific financial terms of the agreement beyond the $12.5 million up-front fee and potential milestone payments and royalties for CTI.

MedImmune will develop the commercial production process for any and all potential drug products. Also, MedImmune will fund a majority of the research and development activities, the level to which is subject to CTI's exercise of a co-promotion option for the lead anti-HMGB-1 candidate, the statement said.

In addition, MedImmune agreed to participate in CTI's next financing via its subsidiary, MedImmune Ventures Inc.

MedImmune's stock (NASDAQ:MEDI) closed Thursday at $39.21, down 2 cents.