Thallion in $150-million pact to develop Shigamabs

Thallion Pharmaceuticals (TSX:TLN) is teaming up with LFB Biotechnologies of France to develop Shigamabs, Thallion’s product candidate for the treatment of Shigatoxin-producing bacterial, or STEC, infection.

The accord, which is expected to close in the first quarter, provides for immediate funding by LFB of costs associated with re-initiating the Shigamabs program.

In a statement, Thallion said that under terms of a definitive agreement, it can receive payments of up to $150-million, which includes an up-front licensing fee of $2.3-million, funding for substantially all future clinical development costs, as well as milestone payments associated with the development, approval and commercial sales of Shigamabs.

In addition, Thallion will receive tiered, double-digit royalties based on product sales.  Thallion will retain primary responsibility for the clinical program, while LFB will be responsible for the manufacture and supply of Shigamabs for both clinical study and commercial sale.  LFB will receive commercial rights to Shigamabs for Europe and South America, while Thallion retains the rights for North America and the rest of world.

“LFB Biotechnologies is an ideal partner for this program as they bring their extensive experience in the development of monoclonal antibodies and next-generation protein therapies as well as their considerable commercial and financial support that is necessary to successfully develop Shigamabs,” said Dr. Allan Mandelzys, executive vice president of licensing and corporate development of Thallion.

LFB is an affiliate of the Laboratoire francais du Fractionnement et des Biotechnologies.