• Actelion Ltd., of Allschwil, Switzerland, and Axovan AG, also of Allschwil, joined forces to optimize and develop molecules identified by the latter firm as drugs that act on endothelial drug targets belonging to the G protein-coupled receptor family. Axovan will receive an up-front payment, as well as research and development funding, milestone payments and royalties on eventual product sales. Actelion will undertake development and commercialization of any drugs rising from the two-year collaboration.

• Adjuvantix Ltd., of Sheffield, UK, a vaccines adjuvant company, said it received further investment from the White Rose Technology Seedcorn Fund, bringing its total funding to £400,000 (US$640,000). The money will be spent on the development of adjuvant systems for flu vaccines that Adjuvantix claims will improve the efficacy of the vaccines in the elderly.

• Arrow Therapeutics Ltd., of London, is to collaborate with Acambis plc, of Cambridge, UK, on the discovery of vaccines using Arrow's technology for finding all the virulence genes that must be deleted or attenuated in an individual virus to prevent it from causing disease while still eliciting a protective immune response. The agreement includes an up-front payment to Arrow, plus potential milestones and royalties. It covers the development of a vaccine against a single, unnamed pathogen, leaving Arrow free to make similar agreements with other partners.

Astex Technology Ltd., of Cambridge, UK, announced the discovery of a form of protein tyrosine phosphatase 1B (PTB1B), which it says has implications for companies targeting the protein in the discovery of diabetes and obesity treatments. PTB1B, a signal transduction protein, is involved in insulin resistance through its role in the dephosphorylation of the insulin receptor, which in turn is a key factor in the development of Type II diabetes. Although recognized as a promising target, there has been little success to date in finding molecules that inhibit PTB1B. Astex says its form of the protein contains a sulphenyl-amide group in the active site of the protein that alters the architecture of the active site and can be exploited in drug design.

• Bavarian Nordic A/S, of Copenhagen, Denmark, manufactured and shipped 5,000 doses of its smallpox vaccine, MVA-BN, to the National Institute of Allergy and Infectious Diseases, a division of the National Institutes of Health in Bethesda, Md., two months ahead of schedule. The consignment, which will be used in clinical trials, is part of an NIAID plan to develop a safe smallpox vaccine. Bavarian Nordic and Acambis plc, of Cambridge, UK, shared a total of $20 million this year to fund the development stage of the program.

• Biota Holdings Ltd., of Melbourne, Australia, raised A$2.5 million (US$1.6 million) by placing shares with fund management company and financier Babcock & Brown Pty Ltd., of Sydney, Australia. The money will be used to develop Biota's drug portfolio, it said.

• Crucell NV, of Leiden, the Netherlands, said it would develop a vaccine against West Nile virus using its PER.C6 cell expression system. Crucell also said it entered a license agreement with Kimron Veterinary Institute of Israel to develop a killed West Nile veterinary vaccine, which also will be based on the PER.C6 platform. The Kimron Veterinary Institute, part of Israel's Ministry of Agriculture, will pay Crucell a license fee, milestones and a royalty on sales of the vaccine in Israel, while the Dutch firm will hold commercial rights to the product outside of Israel and will pay the institute a royalty on sales.

• Cyprotex plc, of Macclesfield, UK, launched Cloe (Cyprotex Lead Optimization Engine) PK, a software system for predicting the pharmacokinetics of potential drug compounds. Cloe PK uses a virtual model of the human body to make accurate estimations of the likely amounts and distribution over time of a compound in the blood and major organs, after it has been given as a pill or injection.

• Etiologics Ltd., of Oxford, UK, acquired the preclinical respiratory research group of Bayer Pharma Research, including 20 staff. The deal includes fully validated respiratory disease models and image and screening technologies. Etiologics has discovered targets in chronic obstructive pulmonary disease and cystic fibrosis and now will be able to move into discovery and preclinical development, it said. The research group is being divested as part of the overall restructuring of Bayer AG, of Leverkusen, Germany. Terms of the deal were not disclosed.

• European Research Commissioner Philippe Busquin said some 2,000 proposals have been submitted to the European Union for projects to be conducted under its new research program for sciences, genomics and biotechnology for health. About 80 of those involve research on animal or human stem cells - embryonic, fetal, umbilical cord blood or adult. Another 26 specific requests for funding have been received that address research on stem cells. Three of those foresee the use of banked or isolated human embryonic stem cell in culture, involving laboratories in Belgium, Finland, Sweden, the UK, the Czech Republic and Israel.

• Genzyme Corp., of Cambridge, Mass., and BioMarin Pharmaceutical Inc., of Novato, Calif., gained approval from the European Commission for Aldurazyme as a treatment for mucopolysaccharidosis-1 (MPS-I). The compound is the first treatment specifically for MPS-I to be approved in Europe and is intended as a long-term enzyme replacement therapy to treat the disease's non-neurological symptoms. The drug was approved by the FDA April 30. Aldurazyme received orphan drug status in Europe in February 2001.

The German Ministry of Education and Research (BMBF) announced positive results from a research program in regenerative medicine. The results, reported at a two-day conference in Bonn, Germany, included progress in stimulating growth in separated nerve endings. Promising results also were seen in a new process for culturing skin for transplanting. The BMBF supports 32 projects in biological replacement of organ functions with annual funding of about €10 million.

• GPC Biotech AG, of Martinsried, Germany, and Altana Pharma AG, of Konstanz, Germany, inaugurated the U.S. Altana Research Institute, an establishment planned by the five-year cooperation the companies initiated in November 2001. The collaboration includes using GPC's technology to evaluate compounds from Altana, sublicensing GPC intellectual property and additional funding to implement GPC technology at the institute. GPC also can earn more than $15 million in milestone payments, not including royalties, for each product that is a direct result of the companies' cooperation. Over the course of the five-year agreement, Altana plans to commit $120 million to the institute.

• ImmunoBiology Ltd., of Cambridge, UK, raised £720,000 (US$1.2 million) to fund its respiratory vaccine program. The round was lead by Generics Asset Management Ltd. The initial target is tuberculosis, in which the company has identified candidate vaccines for the treatment and prevention of the disease.

• Micromet AG, of Munich, Germany, and MedImmune Inc., of Gaithersburg, Md., agreed to jointly develop Micromet's B-cell tumor drug, MT103, and to create up to six drug candidates using Micromet technology. MT103 will be developed first for non-Hodgkin's lymphoma and chronic lymphocytic leukemia. The companies believe that it also might have applications in autoimmune diseases such as rheumatoid arthritis or systemic lupus erythematosus. The compound is in Phase I testing for non-Hodgkin's lymphoma. Micromet will receive potential milestone payments and royalties from MedImmune's North American sales of the product. MedImmune's venture arm also will make an investment in Micromet. For additional compounds developed, Micromet would receive milestone payments and royalties, and MedImmune will cover development costs up to Phase I testing.

• NeuroSearch A/S, of Ballerup, Denmark, and partner Boehringer Ingelheim GmbH, of Ingelheim, Germany, initiated a Phase II study of NS2330 in early diagnosed Parkinson's patients in the U.S. The study will enroll about 250 subjects and is expected to be completed during the second half of 2004. A similar number of Parkinson's patients are being enrolled in a European study, while the same compound is undergoing a Phase II trial in the U.S. and Canada involving 400 patients with Alzheimer's disease.

• NeuTec Pharma plc, of Manchester, UK, announced data from a Phase IIb study of Aurograb, a treatment for the hospital infectious agent, methicillin-resistant Staphylococcus aureus (MRSA), showing the drug was well tolerated and demonstrated a profile that suggested activity against MRSA. Aurograb has activity on its own against strains of MRSA. When combined with vancomycin, it is more effective than either drug used alone. The efficacy also is evident with strains of MRSA that have partial resistance to vancomycin. NeuTec said on the basis of the data it will proceed with a Phase II/III trial comparing the effects of Aurograb in combination with vancomycin against vancomycin alone.

• PamGene International BV, of S-Hertogenbosch, the Netherlands, named Jean Deleage chairman. Deleage, a board member since December 2000, takes over the role from Pieter Strijkert. Deleage was a managing general partner and founding member of Alta Partners; a managing partner of Burr, Egan, Deleage & Co.; and a founding member of Sofinnova SA.

• Pharming Group NV, of Leiden, the Netherlands, entered a manufacturing agreement with DSM Biologics, of Groningen, the Netherlands, for the purification of Pharming's lead product, recombinant human C1 inhibitor (rhC1INH), which it is developing for treatment of hereditary angioedema. The agreement enables it to transfer the process out of the Flanders facility of Genzyme Corp., of Cambridge, Mass., as an earlier agreement with that firm terminates July 1. The product is undergoing a Phase II trial and a Phase II/III study is planned.

• PowderJect Pharmaceuticals plc, of Oxford, UK, announced a £85 million (US$142.6 million) investment over five years in its vaccine manufacturing facilities in Liverpool, which attracted £20 million of public funding from the Northwest Development Agency. The investment enables the company to increase production of its flu and travel vaccines. Meanwhile, Chiron Corp., of Emeryville, Calif, extended its agreed offer for PowderJect until June 23 after receiving valid acceptances representing 66 million shares, or 71.9 percent, of PowderJect.

• Primagen Holding BV, of Amsterdam, the Netherlands, filed for a European patent on a new enterovirus it identified, along with its scientific collaborators. It was identified from clinical samples obtained from several patients with severe diarrhea. In each case, existing bacterial and virology labs within the Netherlands had been unable to pinpoint the cause, Primagen said.

• Scil Biomedicals GmbH, of Martinsried, Germany, signed agreements with Laxdale Ltd., of Stirling, Scotland, and Scarista Ltd., of Isle of Man, UK, to gain the exclusive sales rights for Lyxia. Lyxia is being developed to treat Huntington's disease. The compound received orphan drug status in the European Union in December 2000. The agreements cover sales in 11 European countries.

• Xcellsyz Ltd., of Newcastle, UK, announced it identified the mechanism of action of its lead compound for the treatment of diabetes, XD4241, at the American Diabetes Association meeting in New Orleans. Using the company's conditionally immortalized cell lines, XD4241 has been shown to target glycogen synthase kinase, a key enzyme in the regulation of glycogen metabolism.