OctoPlus co-partner with Biolex in license share for Locteron

The commercial rights to a therapeutic drug developed by Dutch drug delivery company OctoPlus are to be shared with its co-development partner Biolex Therapeutics.

OctoPlus will remain a partner in the process development and in the manufacture of Hepatitis C therapeutic Locteron, but without having to make the investments for the upcoming late-stage clinical programme. The proceeds of the agreement include among others, upfront and milestone payments that amount to a total of US$ 149m (Euro 108m) in the coming years, and royalties on future Locteron sales.

The upfront fee and short-term milestone payments comprise the first significant revenues that OctoPlus generates from the commercialisation of its drug delivery technology PolyActive. In addition to the cash payments under the agreement, OctoPlus will receive an equity stake in Biolex of up to 3%.

A co-development agreement for Locteron has been in place between OctoPlus and Biolex since 2005. Highly promising clinical trial results have been published during the collaboration so far and the product is now being evaluated in a US Phase IIa study. Under the terms of the agreement, Biolex will be responsible for the overall development and commercialisation of Locteron.

Simon Sturge, ceo of OctoPlus, said: "We are very excited to have established this license agreement for Locteron with Biolex. This deal is beneficial for OctoPlus in two ways: Firstly, we will continue to be involved in the development of a potential blockbuster, but without having to make the expenditures of late-stage clinical development, and - secondly the upfront fee, funding of process development and manufacturing activities and milestone payments will transform us into a company with a positive operational cashflow.