Washington Editor

A collaboration announced by Elan Corp. plc and Ingenium Pharmaceuticals AG to develop therapeutics for pain management represents a strategic investment for both companies.

In the case of Elan, the alliance is in step with the company's recovery plan that involves a focus on pain management, neurology and autoimmune disease. Elan, of Dublin, Ireland, faced a series of difficulties last year highlighted by a Securities and Exchange Commission investigation into the company's accounting practices. Once trading at more than $40, Elan's stock (NYSE:ELN) closed Monday at $2.81, down 19 cents. (See BioWorld Today, June 11, 2002.)

For Ingenium, a five-year-old company based in Munich, Germany, the agreement with Elan is viewed as validation of its Deductive Genomics approach to drug discovery, said Michael Nehls, Ingenium's CEO and chief scientific officer. The technology combines genome-covering mutagenesis in the murine model system with a proprietary, therapeutic biological screen.

"Elan has probably the world's best experts in pain research, so they bring scientific expertise to the table, and we bring genetics expertise. Together, hopefully this makes a very fruitful collaboration," Nehls told BioWorld Today.

Nehls said of the Deductive Genomics approach, "We create models for essentially every gene in the genome by a process of random mutagenesis, which is a very efficient way to create a model for every gene. It allows, in a very short time period of the four-year collaboration, to scan every gene in the genome for its functional significance in managing pain. As soon as we identify models that fit the profile of the type of therapeutic to be developed, then we identify the gene pathways and validate the novel entry points for therapeutics together with Elan and then the collaboration continues developing compounds."

Elan will screen against the newly discovered and biologically validated drug targets in order to identify and develop therapeutics, a statement from the company said.

While the companies didn't discuss a specific number of compounds, Nehls said anything beyond one would be a bonus.

Financially, the companies will jointly fund the four-year research programs, estimated to total $10 million. Ingenium has the potential to earn up to $50 million per product in success-driven milestones. Specifically, the milestones are based on the identification of a clinical candidate, the initiation of human clinical trials, the submission of a regulatory application, and product approval in the U.S., Europe and Asia. Elan will be responsible for global commercialization. Ingenium has the option to maintain co-development and co-commercialization rights on all products developed via the alliance, Elan said.

Sunny Uberoi, a spokesman for Elan, told BioWorld Today the financial investment for Elan is modest, but "Elan has gone through a recovery stage and it now focuses on pain, neurology and autoimmune. We have a leading position within the field of neurosciences and our role here is that we want to continue to build on our discovery development for therapeutics, particularly in pain, which is why we have entered this agreement."

As for pain management, Nehls said the area is largely undeveloped.

While the Elan deal will make use of Ingenium's Deductive Genomics technology, the company's other platform is called INGENOtyping, an alternative to producing genetically altered murine models.

Aside from Elan, Ingenium also has deals with F. Hoffmann-La Roche Ltd., of Basel, Switzerland; Sequenom Inc., of San Diego; and Lynkeus BioTech GmbH, of Wurzburg, Germany. Internally, Ingenium is working on an inflammatory bowel product and a candidate for Lou Gehrig's disease.