Idun Pharmaceuticals Inc., a start-up company whosedrug discovery efforts target programmed cell death,signed its first major corporate collaboration Thursdaywith Switzerland-based Ciba-Geigy Ltd. to developtreatments for central nervous system disorders.
Costa Sevastopoulos, chairman of San Diego-based Idun,described the financial terms of the five-year agreementas "very substantial," but said details are not beingdisclosed.
Ciba paid an up-front licensing fee and made an equityinvestment giving it a minority stake in Idun, which wasformed last year. In addition, the pharmaceutical firmcommitted research funds enabling Idun to hire morescientists.
In return for its investment, Ciba received exclusiverights to Idun's technology for drug development aimedat central nervous system diseases.
Sevastopoulos said the deal is the first of what hiscompany hopes is a series of corporate partnershipsgenerating enough funding to enable Idun to avoidseeking additional equity financing among venture capitalinstitutions.
While investor interest has heightened for biotechnologycompanies with drugs in late-stage developmentfollowing a three-year drought, Sevastopoulos said thewell remains dry for start-ups with only early-stageresearch.
"This deal [with Ciba] has enough substance in it that itwill solve our short-term financing needs," he said.
In August 1994, Idun merged with Apoptech Inc., anotherearly-stage company focusing on programmed cell death,and launched its drug discovery efforts with $7.2 millionin venture capital financing.
Sevastopoulos _ who was with the venture capital firm,Delphi Bioventures, and helped start Apoptech _ saidIdun's best chance for continued funding lies with the bigdrug makers.
"Pharmaceutical companies are better at evaluating early-stage biotechnology firms than venture investors," hesaid. "The pharmaceutical manufacturers have the meansand patience to stay with us for several years."
Idun's technology targets apoptosis, or programmed celldeath, which is the process used by cells to regulate theirown demise. Abnormalities in the process can tip thebalance between growth of new cells and elimination ofold ones resulting either in an over-accumulation, such asthat seen in cancer, or an early loss, such as that involvedin degenerative diseases.
In the collaboration with Ciba, Sevastopoulos said thecompanies will be looking for small molecules tomanipulate genes that can delay the death of neuronslinked to Alzheimer's disease, Parkinson's disease andother degenerative disorders of the central nervoussystem.
Idun's patent portfolio includes licenses to genes andrelated technologies involved in both promoting andinhibiting cell death.
Sevastopoulos said the collaboration is the first for Cibain exploring the regulation of apoptosis to treat centralnervous system diseases.
He said it's too early to estimate when a drug candidatemay be ready for clinical trials.
"We're years away from clinical trials," Sevastopoulossaid. "We may get there in five years." n
-- Charles Craig
(c) 1997 American Health Consultants. All rights reserved.