The Burrill Report


Abbott has agreed to pay German biotech Biotest $85 million upfront to support the development and eventual commercialization of an experimental therapy for rheumatoid arthritis and psoriasis.

The upfront is among the largest ever for a single-product deal, according to EvaluatePharma. It will support the development of BT-061, Biotest’s mid-stage monoclonal antibody, a therapy that could prove to be an important tool in fighting inflammatory diseases without suppressing patients’ immune systems.

The medicine works by activating the body’s T-regulatory cells, strengthening a natural function of the body that prevents excessive immune reaction, the companies say. Unlike other antibodies that target the CD4 protein expressed by T-cells, Biotest believes that BT-061 does not weaken patients’ immune responses.

Pending the achievement of certain development, regulatory, commercial and sales-based milestones, Abbott says that Biotest will be eligible to receive additional milestone payments potentially worth $395 million, plus royalties.

“Though the research is still early, BT-061 has the potential to become an important treatment option for patients suffering from autoimmune diseases,” says John Leonard, senior vice president, global research and development at Abbott. “This novel compound will strengthen Abbott's immunology pipeline and we look forward to continuing to build on our expertise in exploring multiple mechanisms and approaches to treat inflammatory diseases.”

Under terms of the agreement, Abbott and Biotest will co-promote BT-061 in the five major European markets: Germany, France, United Kingdom, Italy and, Spain. Abbott will have exclusive global rights to commercialize BT-061 outside those countries. Biotest will be responsible for manufacturing the initial clinical supply of BT-061 and the companies will share responsibility for its commercial production.

Abbott’s Humira, which is approved to treat rheumatoid arthritis and psoriatic arthritis, among other diseases, is on track to become the world’s best-selling drug in 2012, but its dominance hasn’t slowed the development of competing therapies, especially drugs that could be taken orally instead of injected, as with Humira and BT-061.

Abbott is no stranger to making big bets. In September 2010, it paid $450 million in upfront and near-term to secure exclusive rights to develop and commercialize Reata Pharmaceuticals’ then mid-stage candidate for chronic kidney disease, bardoxolone methyl, as well as a minority stake in the company. The companies said on June 16 that they are initiating a pivotal late-stage trial to evaluate the safety and efficacy of bardoxolone in patients with chronic kidney disease and type 2 diabetes.


June 23, 2011
http://www.burrillreport.com/article-abbott_makes_85_million_bet_on_biotest.html