Affitech divests remaining GV1001 vaccine rights;
Divestment continues Affitech's transformation to focus its breakthrough drug
discovery technology on therapeutic antibodies to G-Protein Coupled Receptors
(GPCR).
Copenhagen and Oslo, February 22nd, 2010
Affitech A/S, (Nasdaq OMX: AFFI), the antibody medicines company, today
announced it has finalised the terms of an agreement with KAEL-GemVax Co Ltd of
Korea under which KAEL-GemVax acquires the remaining rights to the GV1001
vaccine. The agreement allows Affitech to focus exclusively on its
transformation into an internationally competitive antibody therapeutics
company rather than its previous cancer vaccine business.
GV1001 and Restructuring of Previous Agreement
GV1001 is a potential therapeutic cancer vaccine based on a peptide derived
from an intracellular nuclear protein called telomerase known to be
over-expressed in many cancers. This potential product was acquired by
Affitech's predecessor, Pharmexa A/S, in 2005 through the acquisition of GemVax
AS and was previously in a Pharmexa company sponsored Phase III clinical trial
in pancreatic cancer (the Primovax study).
Under a share purchase agreement in October 30th 2008, KAEL acquired GemVax
and the further development and commercialisation rights to GV1001 and took
over support of the remaining Phase III trial (the Telovac study) currently
being conducted by an academic consortium with pancreatic cancer patients in
the UK in a study design which varies somewhat from the failed Primovax trial.
The share purchase agreement provided for milestone payments and royalties
based on KAEL-GemVax securing eventual marketing authorisation for the vaccine
product. As previously reported, subject to the successful outcome of the
ongoing cancer clinical trial and attainment of marketing approvals, such
milestone payments may be up to USD 8 million with royalties on commercial
sales of 10%. The agreement also provided for further development of GV1001 to
be funded entirely by KAEL-GemVax and/or other parties.
The current agreement provides for KAEL-GemVax to pay Affitech a payment of
USD 1 million together with releasing Affitech from liabilities associated with
the clinical trial of USD 321 thousand.
Commenting on the deal, Dr Robert Burns, Affitech's CEO, said:
“Thus far there have been no examples of commercial success in the development
of therapeutic cancer vaccines - even though virtually everyone in the field
would loudly applaud any such progress. While we wish our partners KAEL-GemVax
both clinical and eventual commercial success with GV1001, we believe the path
to such success remains long and arduous. Our focus as a company is now on
antibody therapeutic drugs - a therapeutic approach that has proven repeatedly
to be capable of delivering breakthroughs in clinical medicine and with it,
international commercial success “.
“We believe it appropriate to focus Affitech's current efforts on building our
antibody therapeutics business. The effect of this deal is to release funding
from the last remaining non-core vaccine collaboration and put this money to
work on our novel anti-chemokine receptor therapeutic antibody programmes.
These are already starting to produce exciting research results and such
antibodies are likely to be the foundation of Affitech's eventual commercial
success”
Strategic Focus on GPCR Targets
The Affitech business strategy is now focused on the discovery and development
of novel therapeutic antibodies targeting GPCR molecules (G protein coupled
receptors). Many of the most clinically and commercially significant drugs in
the pharmaceutical marketplace target GPCRs. Within the broad family of GPCR
targets, Affitech has selected initially the chemokine receptor sub-group
against which to develop therapeutic antibodies and the company currently has
multiple pre-clinical programmes in this novel anti-chemokine receptor arena.
For more information please contact:
Affitech:
Robert F Burns, PhD
CEO
Tel # +45 50 99 76 42
About Affitech
Affitech AS is a publically traded (Nasdaq OMX Copenhagen exchange) human
therapeutic antibody company headquartered in Copenhagen, Denmark with R&D
facilities in Oslo, Norway. The company utilizes a range of proprietary
antibody technologies for the discovery of fully human antibodies for
application in oncology, inflammation and other disease areas. CBAS™ (Cell
Based Antibody Selection) is Affitech's premier discovery engine for the
isolation of lead antibodies to cell surface molecules in situ. Several of the
Company's proprietary product candidates were generated by CBAS™. Further
information is available at www.affitech.com.
Disclaimer
This news release contains forward-looking statements and forecasts based on
uncertainty, since they relate to events and depend on circumstances that will
occur in the future and which, by their nature, will have an impact on results
of the financial condition and operations of Affitech A/S. There are many
factors that could cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements and
forecasts. These factors include, among other things, risks associated with
technological development, the risk that research & development will not yield
new products that achieve commercial success, the impact of competition, the
ability to transact viable and profitable commercial deals, the risk of
non-approval of patents not yet granted, and difficulties of obtaining relevant
governmental approvals for new products.
No expressed or implied representations or warranties are given concerning
Affitech A/S or the accuracy or completeness of the information provided
herein, and no claims shall be made by the recipient of this news release by
virtue of the information contained herein.