National Editor

Sequoia Sciences Inc. said it will be providing compounds isolated from plants for screening by Anadys Pharmaceuticals Inc.'s technologies, in a deal that aims to identify new anti-infectives based on the compounds.

Using botanical sources for drugs can be a tall order, said Gary Eldridge, president and CEO of San Diego-based Sequoia.

"Over 40 percent of compounds currently in drugs are from natural products," he said, allowing that "the challenges of working with them have taken a lot of people away. A lot of big pharma companies have pretty much dumped them."

Sequoia, though, predicts it will discover more than 100 compounds with novel chemical structures each year. The firm also out-licenses and develops novel antibacterials.

"We've pulled out the interesting compounds and gotten rid of the garbage," Eldridge told BioWorld Today. In the choice of a partner, "we went through extensive due diligence," he added. "We were made to form deals with companies like Anadys."

Sequoia noted the screening technologies used by Anadys are fully compatible with natural products, unlike many others that call for individual or small mixtures of pure compounds.

Under the terms, Anadys, also of San Diego, will use its ultra-high-throughput Atlas and Scan technologies, and will be responsible for lead optimization, development and commercialization. Financial details were not disclosed. Both Anadys and Sequoia are privately held.

The plant-isolated compounds will be added to what Anadys describes as a substantial collection of varied small molecules, RNA-directed small-molecule libraries, and its access to other natural products. Sequoia also has deals with Montreal-based Gemin X Biotechnologies to develop apoptosis-based therapeutics for cancer.

Methods deployed by Anadys, focused on small molecules for bacterial and viral infections, netted that firm its largest deal this summer, with Basel, Switzerland-based F. Hoffmann-La Roche Ltd., for which Anadys will direct its technology at an oncology target from Roche. (See BioWorld Today, Aug. 9, 2002.)

Anadys and Gilead Sciences Inc., of Foster City, Calif., entered a deal in June for discovery of antiviral compounds, using Anadys' technology and an undisclosed target from Gilead. Details were not given, but the deal included an up-front payment and research funding along with potential milestone payments and royalties. (See BioWorld Today, June 11, 2002.)