BioWorld International Correspondent

PARIS - Cerep SA and the French pharmaceutical company Sanofi-Synthélabo renewed their drug discovery collaboration for 2003.

Cerep, of Rueil-Malmaison, said that, given the progress made in its lead optimization programs, it expects to select a first drug candidate for Sanofi-Synthélabo before the end of this year. CEO Thierry Jean told BioWorld International that it would be generated by the longest running of their joint drug discovery programs, which entailed the screening of a "particularly difficult target," but he did not indicate the therapeutic field involved.

He said Cerep plans to provide Paris-based Sanofi-Synthélabo with a major lead, plus secondary chemical compounds, for each of the four targets it is screening. He added that the companies could renew their agreement again next year, or might establish a different form of collaboration, given that Sanofi-Synthélabo will be entirely responsible for the future development of the drug candidates selected by Cerep.

Cerep and Sanofi (prior to its merger with Synthélabo) have been collaborating since December 1997 on the discovery of chemical compounds for a number of therapeutic targets. The scope of the collaboration has been enlarged twice since, first in early 1999, when Sanofi asked Cerep to screen two additional targets, in return for which it doubled its annual research and development funding.

Then in 2002 the companies signed an addendum to their original agreement that provided for work to continue on the two most advanced research programs, for two less promising projects to be dropped, and for Cerep to initiate high-throughput screening of hits for two new targets of therapeutic interest nominated by Sanofi-Synthélabo.

In addition to annual research funding, Cerep would receive milestones when products enter clinical development, as well as royalties on any resulting sales.

Meanwhile, Cerep confirmed that it now is a profitable company, reporting a 78 percent jump in its net operating profit to €3.6 million last year from €2 million in 2001. Its revenues were up 24.7 percent at €34.5 million (from €27.7 million), and Jean said that was nearly as significant as its earnings figures, due to the rate of growth it represented.