Lpath, Inc. (/exchange>OTCBB/exchange>>/>: LPTN), the category leader in lipidomics-based therapeutics, demonstrated commercially acceptable yields in its optimized fermentation process. In doing so, Lpath achieved one of four Phase 1 objectives established by Merck Serono, the exclusive worldwide licensee of ASONEP and Lpath's development partner, and will receive a milestone payment according to the terms of the Merck Serono license agreement.
Lpath will now focus on achieving the remaining three objectives established with Merck Serono and expects final results on these objectives later this quarter or early next quarter. In addition to receiving payments from Merck Serono for achieving each of these objectives, Lpath will also receive a payment of $28 million should Merck Serono elect to take over the ASONEP program. Taking over the program would also include assuming the costs of further development of ASONEP and payment for any Phase 2 drug-product inventory held by Lpath.
"Achieving this first objective represents a major milestone for Lpath," said Scott R. Pancoast, Lpath's president and CEO, "and it further validates Lpath's novel approach of targeting bioactive signaling lipids in the treatment of human disease. Our unique ability to generate antibodies against bioactive lipids using our ImmuneY2™ drug-discovery engine has made Lpath a recognized leader in this emerging field."
"We continue to be optimistic about achieving the other three objectives," continued Pancoast. "And we continue to appreciate the valuable guidance and special expertise -- in both the cancer and multiple-sclerosis arenas -- provided by Merck Serono, our ASONEP development partner."