Theraclone and Zenyaku Kogyo sign multi-year research and development agreement

Theraclone Sciences, Inc., a Seattle-based biotechnology company, and Zenyaku Kogyo Co., Ltd., a pharmaceutical company based in Tokyo, today announced that they have entered into a multi-year research and development agreement.

The collaboration will use Theraclone’s I-STAR™ technology to discover broadly protective monoclonal antibodies for the treatment of pandemic influenza and severe seasonal influenza. In a September, 2009 publication in the journal, Science, Theraclone and collaborators announced the successful isolation of two novel, highly potent neutralizing antibodies to HIV virus from a human subject. Using a similar strategy, Theraclone and Zenyaku Kogyo will embark on a novel discovery program to identify conserved, essential antibody targets on the influenza A virus.

Under the terms of the agreement, Zenyaku Kogyo will receive an option to exclusive antibody rights in Asia, including certain Oceania countries. In addition, Zenyaku Kogyo will retain an option in the territory to potential vaccine candidates stemming from the discovery research. In exchange for these rights, Theraclone will receive an upfront cash payment. If Zenyaku Kogyo exercises its option, Theraclone is entitled to receive success-based R&D milestones totaling over $18M through Phase 1 clinical studies. Theraclone shall receive clinical milestone payments and royalties from potential future sales in the territory and shall retain development and commercial rights in non-Asian countries.

“Influenza presents two major public health threats. The first is the potential emergence of a new, highly pathogenic strain, capable of causing a pandemic. The second is the significant annual toll of seasonal infection in elderly and immunocompromised patients.” said David Fanning, President and CEO of Theraclone Sciences, Inc. “To effectively address these needs, we have entered into this strategic partnership with Zenyaku Kogyo, an early pioneer in the antibody therapeutics field. We believe that this partnership will contribute antibody drug candidates to help manage global pandemic risk and to improve patient outcomes in vulnerable patient populations.”

“Zenyaku Kogyo is committed to the development of novel therapeutics that improve human health. We have been very impressed with initial results from Theraclone’s innovative I-STAR™ technology platform. In partnership with Theraclone, we look forward to developing novel antibody drugs against conserved, essential targets on the influenza virus,” says Kazuhiro Hashimoto, President and Chief Executive Officer of Zenyaku Kogyo Company, Ltd.