PPD Enters Into Agreement With Janssen

PPD has entered an agreement with Janssen Pharmaceutica to develop and commercialise two Phase II-ready therapeutic compounds, one to treat diarrhea-predominant irritable bowel syndrome (IBS-d) and the other to treat complicated skin and skin structure and respiratory infections.

Under two agreements, PPD in-licensed the two assets and will advance the compounds through Phase II development. At the completion of Phase II, Janssen will have the option to resume development and commercialisation of each compound. In exchange, PPD will receive up to $330m in clinical and sales milestones and royalties on sales of the compounds if approved for marketing.

The company said that if Janssen does not buy back a program, PPD will have the option to continue developing and commercialising the compound for that program and Janssen will receive up to $250m in clinical and sales milestones and royalties on sales of the compounds if approved for marketing.

Fred Eshelman, executive chairman of PPD, said: “Our agreements with Janssen diversify and strengthen our compound partnering portfolio and may gain us entry into two large markets. The IBS-d market holds significant drug development potential because of the lack of approved products for this indication, and new antibiotics are needed to address increasing incidences of resistant strain bacterial infections.”

The IBS-d compound is a potential first-in-class locally active opioid receptor agonist and delta opioid receptor antagonist.