Thallion Pharmaceuticals (Thallion) has signed a binding Letter of Intent (LOI) with LFB Biotechnologies (LFB) for the development of Shigamabs, Thallion’s product candidate for the treatment of Shiga toxin-producing bacterial, or STEC infection.
The partnership is subject to the execution of definitive agreements which Thallion anticipates in the first quarter of 2010. The LOI provides for immediate funding by LFB of costs associated with re-initiating the Shigamabs program.
Under the terms of a definitive agreement, LFB is expected to receive commercial rights to Shigamabs for Europe and South America, while Thallion retains the rights for North America and the rest of world.
Reportedly, Thallion can receive payments of approximately C$150m, which includes an up-front licensing fee of approximately C$2.3m, funding for substantially all future clinical development costs, as well as milestone payments associated with the development, approval and commercial sales of Shigamabs.
In addition, Thallion will receive tiered, double digit royalties based on product sales. Thallion will retain primary responsibility for the conduct of the clinical program, whereas LFB will be responsible for the manufacture and supply of Shigamabs for both clinical study and commercial sale.
The companies said that a Joint Development Committee, to be comprised of members from both Thallion and LFB Biotechnologies, will be established to oversee the clinical development of Shigamabs. Based on a Thallion clinical protocol that had been approved previously by both the Argentinean and Chilean regulatory agencies, the companies intend to promptly initiate activities for the launch of a phase II study in South America.
Allan Mandelzys, EVP of licensing and corporate development at Thallion, said: “We have always believed in the potential of Shigamabs to treat STEC infection. LFB Biotechnologies is an ideal partner for this program as they bring their extensive experience in the development of monoclonal antibodies and next-generation protein therapies as well as their considerable commercial and financial support that is necessary to successfully develop Shigamabs.”