Magainin Pharmaceuticals Inc. Friday entered into acollaboration to develop a derivative of its anti-infectivecompound, which is taken from the skin of frogs, withLondon-based Fisons plc for treatment of pseudomonasin cystic fibrosis patients.

Jay Moorin, president and CEO of Plymouth Meeting,Pa.-based Magainin, said Fisons will reimburse hiscompany for U.S. development of the drug, MSI-843,from preclinical studies through Phase IIa clinical trials.Fisons will pick up half of the costs for succeedingclinical tests needed for submission of a new drugapplication with the FDA. In addition, the two companieswill share profits equally.

Outside the U.S., potential revenues will be split based oncontributions to development costs and Magainin mayfund up to 50 percent of those expenses.

Fisons, which is the target of a hostile takeover attemptby Collegeville, Pa.-based Rhone-Poulenc Rorer, made a$2 million up-front payment to Magainin. The potentialacquisition of Fisons is not expected to affect thecollaboration, Magainin officials said.

Rhone-Poulenc Rorer, a subsidiary of France-basedRhone-Poulenc Group, made a $2.6 billion bid for Fisonsin August.

Moorin said development costs for MSI-843 frompreclinical studies through Phase II trials in the U.S. mayrange from $20 million to $30 million. Expenses areabout the same in Europe.

Moorin said Magainin approached Fisons for thecollaboration because of the latter's expertise ininhalation technology. He said MSI-843 was effective inpreclinical studies against pseudomonas strains takenfrom cystic fibrosis patients who did not respond tocurrently available antibiotics. What Magainin needed toproceed with development and eventualcommercialization, Moorin said, was the means to deliverthe drug to the lungs.

Magainin expects to file an investigational new drugapplication with the FDA in mid-1996 to begin clinicaltrials.

MSI-843 is one of more than 2,000 derivatives Magaininhas made from an amino acid compound that protects theskin of African clawed frogs from a broad spectrum ofinfection. Another derivative, MSI-78, is in two Phase IIItrials for treatment of infections associated with diabeticfoot ulcers.

Leonard Jacob, Magainin's chief operating officer, saidthat in addition to killing the pseudomonas bacteria, MSI-843 binds and inactivates dangerous lipopolysaccharides,which are released by the organisms and cause tissuedamage.

Magainin (NASDAQ:MAGN) closed Friday at $10.50,up 50 cents. n

-- Charles Craig

(c) 1997 American Health Consultants. All rights reserved.