BioWorld International Correspondent

SYDNEY, Australia - Peptech Ltd. raised A$10 million (US$5.8 million) from institutional investors and announced that Abbott Laboratories Inc. has been given approval for a drug over which Peptech holds certain intellectual property rights.

Peptech, of Sydney, announced that Abbott Laboratories, of Abbott Park, Ill., had received FDA approval to market Humira, a drug for reducing the symptoms and inhibiting structural damage in adults with moderately to severely active rheumatoid arthritis, who have not reacted sufficiently to traditional anti-rheumatic drugs.

The Australian company did not develop the drug, a monoclonal antibody, but holds patents over the antibody and has a licensing agreement with Abbott.

Peptech Managing Director Stephen Kwik said that he cannot reveal details of the royalty arrangements with Abbott but said the U.S. company was expecting sales of US$1 billion a year from the drug.

Figures like that, plus a statement from Abbott that a specially designed pre-filled syringe for arthritis sufferers whose hands may be affected by the disease will be available in U.S. pharmacies next month, resulted in investors boosting Peptech's share price. The share price jumped from just above $1 to nearly $1.90 before finishing the day of the announcement at $1.69, a price that has held.

In other news concerning the company, Peptech said last week it had raised A$10 million through a share placement with institutional investors, including giant Australian life and insurance group AMP, fund manager ING Australia and the Escor Group, associated with the wealthy Smorgan clan of industrialists.

The funds are to be used for additional working capital.