BioNotebook: Sanofi partner Merrimack reports failure, but shares jump on Actavis deal
This article was originally published in Scrip
Merrimack Pharmaceuticals said its experimental drug partnered with Sanofi failed in a breast cancer study, adding to a list of clinical disappointments.
Investors in the Cambridge, Massachusetts startup, however, found better news in an announced collaboration with Actavis. Merrimack received $2 million upfront and is eligible for up to $15 million in a partnership to discover drugs and companion diagnostics through nanotechnology.
That news seemed to blunt the fact that the study goal was missed in a Phase II trial for Merrimack’s MM-121 drug. The study was one of two announced November 26. The other study didn’t have a stated endpoint, the company said. Merrimack, nonetheless, said it was encouraged by some other findings in the data.
Previously, Merrimack announced failures for its drug in ovarian and lung cancers. However, as it did with the breast cancer study results, Merrimack said it found encouraging signs in its ovarian data announced last month.
Sanofi paid Merrimack $60 million in 2009 to collaborate on the drug. When announced, the deal was said to be worth up to another $470 million in milestone payments for the US company.
Shares of Merrimack rose 8% to $3.40 in Nasdaq Stock Market trading November 26. The stock is down 43% this year.
GSK partner Isis starts early-stage antiviral study
Isis Pharmaceuticals said it started a Phase I study for a viral infection treatment, earning $3 million from partner GlaxoSmithKline.
The companies said the drug aims to treat a common viral infection but didn’t provide specifics. Isis will develop the drug to Phase II and GSK will have an exclusive option to license the therapy and advance the treatment.
The two companies signed a collaboration agreement in 2010 for up to six drug programs. GSK paid Isis $35 million upfront and has paid additional milestones, including $5 million to Isis earlier this month and $7 million in October.
In total, Isis potentially can receive $1.5 billion in license fees and milestone payments.
Shionogi pays Egalet $25 million for painkiller pact
Venture-backed US drug maker Egalet is collaborating with Shionogi to develop abuse-resistant painkillers.
Osaka, Japan-based Shionogi paid Pennsylvania-based Egalet $10 million upfront, invested $15 million in the company and said the deal may be worth more than $300 million in additional payments if multiple drugs are produced using the US company’s technology.
The companies are working on oral hydrocodone opioid pain medicines.
Cancer drug developer Celsion jumps on $20 million loan
Cancer drug developer Celsion’s said it has a $20 million loan agreement with Hercules Technology Growth Capital that may, in part, help fund acquisitions.
The New Jersey-based company said it had enough cash already to fund operations, including a late-stage trials. Celsion said it drew $5 million from the loan facility this week, mostly to pay down another outstanding debt.
Shares of the company rose 11% to $3.93 in Nasdaq Stock Market trading following the news. Celsion’s shares have dropped by more than half this year.