Glycomed Inc., which recently restructured to slash its annual expensesby nearly 50 percent, said it has signed a three-year, $10.5 million dealwith a Japanese pharmaceutical maker to develop drugs based on theCalifornia company's cell adhesion inhibitors.Under the terms of the research collaboration, Sankyo Co. Ltd., ofTokyo, has paid Glycomed $1 million in cash and has made a $1.5million equity investment. The company would not reveal details of theequity agreement.The deal also gives Glycomed, of Alameda, Calif., almost $2.7 milliona year in research funds for the next three years for a total of $8 millionplus certain milestone payments. In addition, Sankyo will pay $5million for each drug developed.In return, Glycomed has granted Sankyo exclusive marketing rights forcell adhesion products in the Far East. Glycomed retains allmanufacturing rights. The three-year agreement includes an option fora two-year extension.Glycomed said its cell adhesion research has numerous potentialapplications for treatment of acute and chronic inflammatory diseases,such as rheumatoid arthritis and asthma, and for cancer andcardiovascular disorders.In addition to the research deal, Glycomed has signed a licensingagreement giving Sankyo exclusive Far East marketing rights forGalardin MPI in the treatment of corneal ulcers and other ophthalmicindications.Glycomed is conducting Phase II/III studies of Galardin MPI in theU.S. for corneal ulcers. It has not begun trials of the drug in Japan.Galardin MPI is a synthetic, small-molecule compound that inhibitsenzymes, called metalloproteinases, which have been linked toinflammation-related tissue destruction.Earlier this week Glycomed said it was reducing its staff of 101employees by 30 percent and narrowing its development focus to cutits annual burn rate from $19 million to $10 million. The company saidthaton June 30, the end of its fiscal year, it had $60 million in cash. -Charles Craig
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