By Mary Welch

In its first major collaboration, Microbiotix Inc. partnered with BioChem Pharma Inc. to identify and develop novel antibiotic agents that inhibit bacterial DNA replication.

BioChem Pharma, of Laval, Quebec, will commit research funding and personnel to the alliance and will purchase an equity position in Worcester, Mass.-based Microbiotix. In addition, privately held Microbiotix will receive milestone payments and royalties on any products developed in the collaboration.

"They will be taking a second investment as well," said Kirk Field, Microbiotix's president and chief scientific officer. "They will have less than 20 percent of the company, a minority position. However, their position in the company and this deal provides us with enough money for our purposes and gives us a nice valuation."

Over the next three years, the companies will work on discovering and developing novel antibiotics to treat antibiotic-resistant bacterial infections. The research will concentrate on identifying inhibitors of enzymes that are essential for the replication of bacterial DNA.

"We will have a collaborative research and screening relationship with BioChem Pharma, which we find very exciting," Field said. "We anticipate identifying drug candidates that can be rapidly advanced for clinical evaluation. We have a license from the University of Massachusetts, where we have taken a series of patents on a platform of antibiotic agents that inhibit gram-positive infections."

The work is based on research from Microbiotix's founding scientists, George Wright and Neal Brown, while they were at the University of Massachusetts Medical School. The company was incorporated in 1998.

Microbiotix said, as it grows, it anticipates expanding its focus to the research and development of additional classes of antibiotic drugs, as well as novel antiviral agents.

BioChem Pharma's stock (NASDAQ:BCHE) closed Thursday at $27.75, down 25 cents.