Adelaide-based pharmaceutical company Bionomics yesterday announced a deal with US drug company Ironwood to develop and commercialise its anti-anxiety drug BNC210.
The deal will see Bionomics, who posted a net profit of $4.07 million last financial year, receive an initial payment of US$3 million, and US$13 million (AU$12.66 million) over the next 24 months.
Should the drug be successfully developed, trialed and sold, the biotech company could receive a further $US345 million, plus royalties on future sales.
The money will go towards the development and trialing of several other drugs.
Bionomics chief executive officer and managing director Deborah Rathjen says the partnership would be no surprise to Bionomic's shareholders.
"Partnering BNC210 has been a major objective for Bionomics, and this collaboration with Ironwood continues Bionomics' strategy to form partnerships to develop and commercialise its proprietary drug candidates."
"Our deal also represents an important milestone for the Australian biotechnology sector, as this is the largest deal for a phase one asset," she says, referring to drugs yet to be tested with large groups.
Rathjen says transactions of a similar value usually only go to drugs that have passed phase three of clinical testing, the last stage before they are considered for regulatory approval.
Rathjen says this was a testament to the potential of BNC210.
The company said in a statement that ''data from several preclinical studies indicate that BNC210 has anti-anxiety activity without the sedative side effects that are typical of benzodiazepines, a class of drugs used to treat anxiety".
Ironwood senior vice president of research and development and chief scientific officer, Mark Currie, appeared to share Rathjen's confidence during a conference call with investors yesterday.
"Let me reiterate our excitement for this opportunity with Bionomics. We are quite excited about [BNC210], the pharmacology and the science that has been brought to the table."
During the same call Rathjen expanded on the reasons behind the partnership.
"Significant investment is required for the further development of BNC210 and this will now be funded by Ironwood," she said.
"Ironwood has the capacity to give BNC210 greater attention, and we are confident it will be a focus for them."
