Gynex Pharmaceuticals Inc. announced Monday two technologytransfer deals with Bristol-Myers Squibb Co. that will giveGynex its first revenue stream and the prospect of additionalroyalties from new contraceptives developed with itstechnology.
Gynex said it has granted an exclusive worldwide license toBristol-Myers Squibb Co. for Gynex's patented oralcontraception dosing regimen. At the same time, Gynex(NASDAQ:GYNX) received from Bristol-Myers exclusive U.S.rights to Delatestryl, an injectable testosterone that is alreadyon the market.
"Delatestryl represents our first regular revenue streambecause our other products are currently in development. Webelieve Gynex has taken a major step toward profitability," saidcompany President Stephen M. Simes.
Gynex shares fell 25 cents to $3.63.
Bristol-Myers will manufacture Delatestryl, and Gynex plans tobegin sales and distribution by midyear. The product is aninjectable testosterone used to treat men who suffer fromtestosterone deficiency and to treat delayed puberty in boys.Gynex will pay a fee on sales to Bristol-Myers. Current U.S.sales are about $2 million.
In the other part of the deal, Bristol-Myers will have the rightto develop new oral contraceptives using Gynex's progestogen-based regimen.
Traditional oral contraceptives provide different levels andcombinations of estrogen and progestogen during 21 days andare followed by seven days of a placebo. Gynex's regimenprovides low dosages of estrogen during five of the seven dayswhen a placebo would otherwise be taken, according to LynneFranklin, vice president of financial relations. Low doses ofestrogen during this time should reduce potential forpregnancy if a pill is missed later in the cycle and shouldreduce occurrence of breakthrough bleeding, Franklin said.
The rights will be limited to use of the progestogen currentlycontained in Bristol-Myers' oral contraceptive. Gynex willreceive royalties from any products covered by the license.
The Vernon Hills, Ill., company is seeking additional licensees.It previously granted Organon Group, a division of Akzo of theNetherlands, the option to acquire an exclusive worldwidelicense to the regimen limited for use with Organon'sprogestogen.
-- Holly Ganz BioWorld Washington Bureau
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