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news.MethylGene, a biopharmaceutical company, has announced that Celgene has terminated its licensing agreement for oncology histone deacetylase inhibitors, including MGCD0103. As a result, MethylGene will reacquire the rights to these programs.
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Furthermore, the company announced that it will implement a strategic initiative to focus its resources on the clinical development of its proprietary pipeline.
MethylGene will reacquire all rights to MGCD0103 and other histone deacetylase (HDAC) and sirtuin inhibitors in territories licensed to Celgene including North America and the EU. As part of the termination provisions, Celgene will continue to support MGCD0103 for a period of 90-days to ensure a smooth transition.
This termination does not affect MethylGene’s relationship with Taiho for Japan and certain other Asian countries. Celgene acquired the rights to MGCD0103 through its March 2008 acquisition of Pharmion. MethylGene now owns the worldwide rights to three compounds, MGCD0103 (with the exception of certain Asian territories), MGCD265 and MGCD290, all of which are at various stages of clinical development.
MethylGene also announced that after a review of the company’s current research, development and business activities, the company will focus on advancing its clinical pipeline, which represents the most attractive, near term value-generating opportunities. Accordingly, the company will begin a process to discontinue its discovery research activities, including a phased workforce reduction.
The first phase of the reduction will occur over the next two months with additional reductions planned during 2009 as funded discovery research with Celgene for sirtuin inhibitors for cancer and with Otsuka Pharmaceutical for kinase inhibitors for ocular diseases are concluded. It is expected that approximately half of the company’s current staff of 109 full-time employees will be affected by the transition when completed as planned.
Donald Corcoran, president and CEO of MethylGene, said: “We believe regaining exclusive rights to MGCD0103 will allow MethylGene to accelerate submissions to the FDA aimed at lifting the partial clinical hold for MGCD0103.”