Penwest and Alvogen sign generic development deal
This article was originally published in Scrip
Penwest Pharmaceuticals and Alvogen have agreed to identify and select up to five compounds for generic development.
The compounds will be selected using Penwest's TIMERx technology and Penwest will formulate the compounds and receive milestones and royalties on development of each compound. Alvogen will manufacture and carry out clinical research for each formulation. It is also responsible for regulatory filings and worldwide commercialisation of the products. Financial terms were not disclosed.
Penwest develops products that primarily target rare disorders of the nervous system and is currently developing A0001, or a-tocopherolquinone, a co-enzyme Q10 analogue demonstrated to improve mitochondrial function in vitro.
The deal represents a turnaround in the firm's fortunes from less than a year ago. In June, Penwest's shareholders approved proposals that called the closure of the business after having been engaged in a proxy battle with dissident shareholders Tang Capital and Perceptive Life Sciences who wanted to halt A0001's development (scripnews.com, 26 June 2009).
Penwest avoided closure and posted two consecutive quarters of profit growth, rising to $1.2 million in the fourth quarter from $383,000 in the third quarter. In January A0001 entered Phase IIa clinical trials in patients with Friedrich's ataxia. The company expects data in the third quarter. Alvogen is a US-based company that develops complex generic products.