Deprenyl Research Ltd. of Toronto has awarded a contract toMedicis Pharmaceutical Corp. to develop the dermatologicalapplications of a topical skin cancer treatment that Deprenylrecently acquired from Parteq Research & DevelopmentInnovations.
The drug, 5-aminolevulinic acid (ALA), was developed atQueen's University in Kingston, Ontario. Parteq, a not-for-profit organization, acted as the technology transfer agent.
Medicis will conduct additional Phase II trials in the UnitedStates and will have the ability to gain U.S. marketing rights.
Deprenyl said that it advanced $4 million to Medicis, fullysecured against collateral, and has received Medicis commonstock and Class E warrants. If exercised, the warrants wouldgive Deprenyl slightly less than 10 percent of Medicis stock.Medicis (NASDAQ:MDRXA) closed Monday at $1.66, up 13 cents.There are 40 million shares outstanding, according to Dr. D.Geoffrey Shulman, Deprenyl co-chairman. Deprenyl(NASDAQ:DEPLF) closed down 25 cents at 12.88.
Deprenyl is seeking additional partners to develop bladdercancer and uterus cancer applications of ALA.
As part of the deal, Deprenyl received an exclusive license forCanada on a range of dermatological products from Medicis. --Steve Usdin
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