PTC’s small molecules are designed to inhibit the hepatitis C virus (HCV) internal ribosome entry site (IRES) mediated production of viral proteins. The IRES is highly conserved among all HCV genotypes and is required for the expression of all viral proteins involved in replication of the hepatitis C virus.
PTC identified the compounds in its HCV program through the company’s proprietary gene expression modulation by small-molecules (GEMS) technology. This technology exploits the regulatory mechanisms found in the untranslated regions of messenger RNA for the identification of small molecule drugs that can treat diseases by selectively increasing or decreasing the expression of key proteins.
Under the terms of the agreement, PTC and Schering-Plough will conduct a joint research program, and Schering-Plough will be responsible for development and commercialization efforts worldwide.
Schering-Plough will make an upfront payment to PTC of $12 million and provide funding for PTC’s research efforts. Additionally, PTC can earn milestone payments if specific development, regulatory and commercial goals are achieved. Total payments to PTC could exceed $200 million.
Schering-Plough will receive exclusive worldwide commercialization rights for any approved products and pay PTC royalties on worldwide net sales.