Progen Signs Muparfostat LOI For License, Collaboration With Medigen

Progen Pharmaceuticals said that it had recently terminated its previous agreement with Global Transbiotech and was looking for a partner that could complete product development and commercialisation of Muparfostat (PI-88) globally.

Muparfostat (PI-88) is a multi-targeted cancer therapeutic in late stage development which inhibits both angiogenesis (or tumour promoting) factors such as Vascular Endothelial Growth Factor (VEGF), Fibroblast Growth Factors (FGF) 1 and 2, and heparanase, an enzyme implicated in metastasis (tumour spread).

Both the entities are now expecting to negotiate and execute a license and collaboration agreement based on the term sheet already discussed. It is expected that these negotiations will be completed within 60 days pending any regulatory approvals.

Stanley Chang, chairman and CEO of Medigen Biotechnology, said: “The signing of this Letter of intent (LOI) with Progen for Muparfostat (PI-88) depicts Medigen’s strong intention to put the PI-88 Phase III trial back on track with commercialisation in the near future.

“Medigen looks forward to working with Progen For personal use only diligently to make PI-88 a successful story in the treatment of liver cancer.”

Sue MacLeman, CEO of Progen Pharmaceuticals, said: “The Medigen team have experience with the product as they were involved in both the development and Phase II clinical trials of Muparfostat (PI-88). They have also offered to enter into a licensing agreement on terms that are better than the previous agreement including improved milestones and royalties.”

Stuart James, chairman of Progen Pharmaceuticals, said: “We are delighted to be able to settle our differences after the well documented issues of 2009 and look forward to a positive productive relationship that will bring benefits to Progen shareholders not only from this deal but also other potential collaboration in Asia.”