Celtic Pharma Licenses Targeted Drug Delivery Technology From IDEA AG
New York, NY - Celtic Pharmaceutical Holdings LP ("Celtic Pharma"), the international private equity firm focused on the biotechnology and pharmaceutical industries, and Munich-based IDEA AG ("IDEA") today announce that a Celtic Pharma subsidiary, TDT, has acquired an exclusive global license to IDEA's Transfersome® targeted delivery technology, including global rights to all IDEA's products in clinical and pre-clinical development except for IDEA's lead product, IDEA-033, an NSAID indicated against "deep pain", which IDEA will continue to develop independently of TDT.
IDEA's breakthrough Transfersome® technology enables the targeted and non-invasive delivery of drugs (including large molecules such as proteins) through the skin, typically in a gel or liquid spray formulation. Transfersomes® can be engineered either to permit drug release close to the surface of the skin, around the cutaneous microvasculature or up to and within the various tissues deep below the treated skin. Avoiding cutaneous drug clearance ensures a high local drug concentration at the site where it is required while avoiding side effects and other issues involved in systemic drug administration. IDEA's current product pipeline is focused primarily on dermatological disease indications and pain, but TDT plans to work with the IDEA team to apply this exciting drug delivery technology to additional opportunities.
The license purchased by TDT includes all forms of Transfersome®-based trans-dermal therapeutics but excludes NSAID delivery to deep tissue for the treatment of inflammation and pain. IDEA therefore retains all its rights to its lead product candidate, IDEA-033, which it is developing as a proprietary program currently completing Phase 3 trials in Europe in the indication of osteoarthritis. IDEA-033 is licensed in the United States and Canada to a top-tier pharmaceuticals company, with whom IDEA is working closely.
The detailed financial terms of this transaction are not being disclosed but include an upfront cash payment to IDEA, additional contingent payments, and royalties on Transfersome®-based products developed by TDT. In addition, TDT has committed to invest a minimum of $17.85 million (€15 million) in developing the Transfersome®-based product portfolio already identified and intends to continue to fund further product development of Transfersome®-based products which can be brought to the market rapidly.
Today's agreement represents the second phase of Celtic Pharma's relationship with IDEA. In September 2005 Celtic Pharma acquired a 21 percent holding in IDEA and John Mayo, one of Celtic Pharma's Managing General Partners, was elected to its Supervisory Board.
John Mayo commented: "IDEA's technology is a completely new method of drug delivery. It provides important new possibilities for targeting medication to the point of need without the necessity for injections and the associated visits to the doctor's surgery. The initially-identified drug candidates alone have the potential to address major areas of unmet medical need where tissue-specific, non-invasive therapies will offer doctors and patients a new treatment paradigm. This licensing agreement represents another important step in Celtic's aggregation of a strong, low-risk portfolio of late-stage products and proven technologies."
Gregor Cevc, Chief Executive Officer of IDEA, said: "The deal with TDT will allow IDEA to concentrate on its most advanced product for innovative, safer treatment of osteoarthritis. Celtic's agreement to fund and support the global development of additional products from IDEA will expedite their progress towards the market and maximise their commercial success."
Joseph Blaker, Chairman of IDEA's Supervisory Board observed: "I am pleased that through this single transaction IDEA has secured further funding on competitive terms for the completion of the development of IDEA-033 whilst ensuring the development of the balance of its portfolio."
Stephen Evans-Freke, Celtic Pharma's other Managing General Partner, added: "Celtic is delighted to be teaming up with one of Europe's most interesting private life science companies and with an outstanding entrepreneurial management team. We recognize the pre-eminent importance of IDEA-033 to the Company, but we are also committed to realizing, in close collaboration with the IDEA team, the broader potential of this breakthrough drug delivery technology."
SOURCE: Celtic Pharma