Biotech firm signs out-license deal worth $30M

Montreal, QC March 17, 2003 BioAxone Therapeutic, a Montreal-based neuroscience company, says it has entered into a license and supply agreement with an American biotechnology company. The deal, which the company says is worth approximately $30 million, consists of a mixture of cash, equity and royalties over the next five years.

In exchange, BioAxone has granted its partner a restricted license, and BioAxone will provide both research and GMP-grade quantities of one of its proprietary compounds. In addition, BioAxone will provide pre-clinical data, as well as technical know-how on activity assays and assay development. The deal provides BioAxone’s partner with a compound shown to be highly effective for treatment of the partner’s target medical condition, and accelerates their development program. The name of the company cannot be released because of a confidentiality agreement and the highly competitive nature of the field.

BioAxone Therapeutic was established April 2000 and is a privately owned company. The company specializes in the development and commercialization of proprietary technologies that target Rho signaling. Rho signaling is applicable to medical indications that include central nervous system, cancer and related fields.