By Vicki Brower
Special to BioWorld Today
Neurocrine Biosciences Inc. signed an agreement to acquire privately held Northwest Neurologic Inc. (NNL), for $4.2 million in stock.
San Diego-based Neurocrine will add five or six employees to the current five at NNL, of Portland, Ore., which will become a wholly owned subsidiary.
NNL scientists discovered and characterized a number of members of the melanocortin receptor family and a number of neurotransporter systems. The melanocortin receptors and transporters expand Neurocrine's strengths in neurodegenerative and neuropsychiatric diseases. Neurocrine's programs are based on corticotropin-releasing factor (CRF) antagonists.
CRF and melanocortin receptors are members of the same family of 7-membrane G-coupled receptors, said Neurocrine spokesperson Paul Hawran.
A number of NNL's core technologies have been licensed from the Oregon Health Sciences University, of Portland, where the company's founding scientists — Susan Amara and Roger Cone — are employed.
Cone's laboratory has identified a family of five melanocortin receptor subtypes, several which have been cloned by his lab. One of them, known as MC4, was recently identified as an important regulator of appetite, body weight and insulin secretion, and represents a novel target for the treatment of obesity, cachexia and diabetes. All NNL compounds are in the preclinical stage.
Neurocrine said NNL's research is a good mesh with its expertise in G-protein-coupled receptors and its programs in obesity, anorexia nervosa, and diabetes. Also, Neurocrine scientists believe that the melanocortin receptors may be significant in treating other endocrine-related conditions and brain disorders with which it is currently involved.
Amara recently cloned multiple excitatory amino acid transporters, which may provide novel mechanisms for modulating glutamate concentrations in the brain. Glutamate concentrations are elevated in stroke, head trauma, and neurodegeneration. Neurocrine's acquisition of NNL is expected to allow the company to pursue molecular targets for several neurological, endocrine and metabolic disorders. Currently, NNL has four melanocortin receptors in screening, and expects to pursue neurodegenerative diseases, obesity and epilepsy once leads are optimized.
NNL has research collaborations with Wyeth-Ayerst Laboratories Inc., of King of Prussia, Pa. (a division of Madison, N.J.-based American Home Products Corp.) and Procter & Gamble, of Cincinnati. Both will continue after the merger.
Neurocrine said it has begun Phase I trials with an orally active, selective CRF-1 antagonist to treat anxiety and depression. Preclinical data show that increased CRF levels in the brain contribute to primary symptoms associated with anxiety and depression, as well as secondary symptoms such as reduced appetite, sedation, and depressed libido, said Neurocrine scientist Errol de Souza. In clinical anxiety, depression and panic, humans show greatly elevated secretion of CRF.
The company's partner in the CRF-1 program is Janssen Pharmaceutica NV, of Beerse, Belgium, which made a $1 million equity investment in Neurocrine. (See BioWorld Today, Feb. 17, 1995, p. 1.)
Neurocrine also has an agreement with Indianapolis-based Eli Lilly and Co. to develop drugs for obesity and Alzheimer's disease, based on the up-regulation of CRF to normal levels by small-molecule inhibitors of CRF-binding protein to free CRF, in order to carry out its signalling functions in certain targeted areas of the brain. With Ciba-Geigy Ltd., of Basel, Switzerland, Neurocrine is collaborating to develop altered peptide ligands for the treatment of multiple sclerosis. (See BioWorld Today, April 4, 1996, p. 1).
At the end of 1997, Neurocrine had $75.1 million in cash. *