Pfizer in Cancer Pact
Pfizer
(PFE) - Get Report
agreed to develop, manufacture and commercialize a new drug licensed from Coley Pharmaceutical Group, a privately held company specializing in molecular medicine.
According to the agreement announced Thursday, Pfizer will make an initial payment of $50 million to Massachusetts-based Coley. The deal also calls for as much as $455 million in milestone payments, plus royalties depending on the success of the drug, ProMune. Pfizer may also invest up to $10 million in Coley's common stock when the company goes public.
Coley's ProMune, a drug injected into the fatty tissue just under the skin, is a potential product for the control and prevention of cancers in humans. It belongs to a class of investigational drugs, developed using Coley's proprietary drug discovery technology, that regulate abnormal immune functions that cause certain chronic illnesses.
These drugs recognize DNA patterns common in pathogens but uncommon in human DNA and induce the most appropriate immune response for combating the specific illness. This class of drugs could also potentially treat hepatitis C, asthma and allergies.
Pfizer will fund future development of ProMune, including phase III trials for the treatment of lung cancer and other types of cancer. Pfizer also will fund a collaboration with Coley to develop other similar cancer drugs. If they prove successful, Coley could receive additional royalties.
Pfizer shares were up 40 cents, or 1.5%, to $26.44.