Quadra Logic Technologies Inc. (QLT) announced Friday thatit has amended its strategic alliance with American CyanamidCo. Under the new agreement, Cyanamid will market anddistribute QLT's light-activated drug Photofrin in countrieswhere regulatory and pricing approvals have been receivedbefore Dec. 31, 1995. Previously, Cyanamid held exclusivemarketing and distribution rights for North America, Europeand Japan.Cyanamid of Wayne, N.J., is backing off on its funding ofPhotofrin development under the new agreement, limiting itsinvestment to the completion of a new drug application foresophageal cancer in the U.S. and responses to questions fromregulatory authorities in countries in which marketingsubmissions have already been made. QLT said it hopes toreceive approval for Photofrin before the end of 1995 in thecountries it has already petitioned for regulatory approval.Photofrin is administered by injection, after which itaccumulates in tumors. The drug is then activated by amedical laser, which causes the release of toxic oxygencompounds that kill the tumor cells. The product is alreadyapproved in Canada for the treatment of papillary bladdercancer.No Change in Revenue SharingThe revenue-sharing terms of the original agreement remainunchanged. QLT of Vancouver, British Columbia, will receivebetween 26 and 29.5 percent of product sales in Japan and32.5 percent of product sales outside Japan.Under the revised agreement, QLT also will reacquire rightsto its second-generation light-activated drug, Benzoporphyrinderivative (BDP). QLT is regaining BDP in exchange forCyanamid's reduced funding for Photofrin development. QLTalso will repay a $1.68 million loan from Cyanamid inadvance of the original terms. QLT maintains the right toreacquire the rights to Photofrin on a country-by-country basis(excluding Japan) under terms to be negotiated at the time ofthe reacquisition if it disagrees with Cyanamid's marketingstrategy for the drug. The revised agreement also allowsCyanamid to relinquish marketing rights to the drug in anycountry after Dec. 31, 1995, as long as it has been marketingPhotofrin in that country for at least two years.QLT's stock (NASDAQ:QLTIF) gained 13 cents on Friday,closing at $6.25 per share.
-- Karl A Thiel Business Editor
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