IP Group PLC MBS announces collaboration worth up to £176m (0917Y)
November 27 2014 - 2:00AM
UK Regulatory
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RNS Number : 0917Y
IP Group PLC
27 November 2014
FOR RELEASE ON 27 November 2014
IP Group plc - Modern Biosciences announces collaboration worth
up to GBP176m with Johnson & Johnson Innovation and Janssen
IP Group plc (LSE: IPO) ("IP Group" or "the Group" or "the
Company"), the developer of intellectual property based businesses,
is delighted to note that Modern Biosciences plc ("Modern
Biosciences" or "MBS") has entered into an R&D alliance and
global option and licence agreement with Janssen Biotech, Inc
("Janssen") in relation to MBS' novel bone-protective compounds for
the treatment of rheumatoid arthritis ("RA"). The goal of the
collaboration, facilitated by the Johnson & Johnson Innovation
Centre in London, is to develop new drugs for the treatment of
RA.
Under the terms of the exclusive agreement, Modern Biosciences
will receive an up-front payment and is eligible to receive
development, regulatory and commercialisation milestone payments up
to a potential total of GBP176 million. In addition, MBS will
receive royalties on future sales of any products that may result
from the alliance upon successful launch and commercialisation.
RA is a severe, painful inflammatory disease that can cause
progressive joint and bone erosion and eventually lead to
disability. MBS' compounds work by a novel mechanism of action that
targets both the inflammatory component of RA and the associated
bone destruction. This approach has the potential to not only
protect the joints of people living with RA from further damage but
to control the pain and swelling associated with the disease. The
most advanced of MBS' compounds is currently in pre-clinical
development and is due to enter Phase 1 clinical studies in
2015.
Alan Aubrey, Chief Executive of IP Group,said: "This agreement
is a major milestone for the Group, having set up Modern
Biosciences as a dedicated drug development operation some years
ago. It is an excellent example of the value that can be created
from the IP Group model of commercialising novel intellectual
property, in this case from the University of Aberdeen, and is a
significant achievement for both MBS' staff and all of its
stakeholders. The Group's Biotech division has already seen
significant success with the sale of Proximagen to Upsher-Smith
Laboratories Inc and, more recently, with Synairgen plc's agreement
with AstraZeneca, and we remain excited about its prospects."
Sam Williams, CEO of Modern Biosciences,said: "We are delighted
to be working with Janssen to progress our novel series of
compounds. MBS' compounds have unique characteristics compared to
existing treatments for rheumatoid arthritis and we believe Janssen
is an ideal partner with which to take the molecules forward. This
agreement demonstrates MBS' business model, which is to take
early-stage assets from academia and advance them to a point of
value inflexion when they can be licensed to industry, generating a
return for our stakeholders."
Modern Biosciences was established to source late-stage
discovery projects from academia, conduct early proof-of-principle
clinical studies and out-license the resulting programmes to the
pharmaceutical industry. IP Group holds an undiluted beneficial
interest of 61.1% in Modern Biosciences and, as a result, its
income and expenses are consolidated into those of the Group.
For more information, please contact:
IP Group plc www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer +44 (0) 20 7444 0050
Liz Vaughan-Adams, Communications +44 (0) 20 7444 0062 / +44 (0) 7979 853 802
liz.vadams@ipgroupplc.com
FTI Consulting
James Melville-Ross/Simon Conway/Victoria Foster Mitchell +44 (0)20 3727 1000
Modern Biosciences
Dr Sam Williams, CEO +44 (0)845 074 2929
Notes for editors
About IP Group
IP Group is a leading UK intellectual property commercialisation
company, developing technology innovations primarily from its
research intensive partner universities. The Group offers more than
traditional venture capital, providing its companies with access to
business building expertise, networks, recruitment and business
support.
IP Group's portfolio comprises holdings in around 90 early stage
to mature businesses across the Healthcare, Biotech, Cleantech and
Technology sectors. These businesses include Oxford Nanopore
Technologies, the DNA sequencing development company, Revolymer,
best known for its removable chewing gum, and Xeros, which has
received many accolades for its revolutionary clothes washing
techniques with a much reduced requirement for water.
For more information, please visit our website at
www.ipgroupplc.com.
About Modern Biosciences
Modern Biosciences is a drug development company which sources
late-stage discovery projects from academia, conducts early
proof-of-principle clinical studies and out-licenses the resulting
programmes to the pharmaceutical industry. Modern Biosciences'
major shareholder is IP Group plc, the developer of intellectual
property based businesses. For more information, please visit
www.modernbiosciences.com.
About MBS' bone-protective compounds
MBS' novel bone-protection programme was licensed in 2007 from
OsteoRX Limited ("OsteoRX"), a spin-out company from the University
of Aberdeen ("Aberdeen"). The programme comprises a series of
orally available small molecules which are highly effective in
preventing rheumatoid arthritis in disease models. The compounds
act via a novel molecular mechanism which means they not only
reduce inflammation and bone damage associated with rheumatoid
arthritis, but have the potential to reverse bone damage via a
directly protective effect that is unique amongst existing agents.
Under the terms of its agreement with OsteoRX and Aberdeen, MBS
will share an undisclosed percentage of revenue generated under the
Janssen agreement with Aberdeen and other stakeholders. MBS' novel
bone-protection programme was recently the subject of a GBP2.4
million award from Innovate UK through the BioMedical Catalyst
("BMC"). The BMC funding will make an important contribution to the
Phase 1 programme and builds upon an earlier GBP1.6 million BMC
award made in 2012 which enabled the programme to progress to its
current stage.
About rheumatoid arthritis
Rheumatoid Arthritis (RA) is a chronic, progressive and
disabling auto-immune disease affecting 165 million people
worldwide, or one per cent of the global population. It is an
incredibly painful condition, can cause severe disability and
ultimately affects a person's ability to carry out everyday tasks.
The disease can progress very rapidly, causing swelling and damage
to cartilage and bone around the joints. Any joint may be affected
but it is commonly the hands, feet and wrists that are involved. It
is a systemic disease which means that it can affect the whole body
and internal organs such as the lungs, heart and eyes.
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
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