--Affitech Gains Exclusive Worldwide Rights to Develop and Commercialize New Anti-VEGF Antibodies--
--Peregrine to Receive Upfront and Research Fees, Potential Milestone Payments and Royalties from Affitech--
TUSTIN, Calif. and HORSHOLM, Denmark, July 22 /PRNewswire-FirstCall/ -- Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM) and Affitech A/S (Nasdaq OMX: AFFI) today announced that they have entered into a licensing agreement for antibody therapeutic rights under Peregrine's preclinical anti-VEGF (Vascular Endothelial Growth Factor) antibody program. Under the terms of the agreement, Affitech will license exclusive worldwide rights to develop and commercialize products under Peregrine's selective anti-VEGF intellectual property portfolio, including the fully human antibody r84, which was discovered by Affitech and jointly developed by the companies under an ongoing collaboration. Under the license agreement, Affitech will be responsible for future preclinical and clinical development and potential product commercialization. Peregrine will receive an upfront payment, research fees and future milestone payments potentially totaling in the double-digit millions (US$). Peregrine will also receive royalties on any future sales and a share of sublicensing revenues. Additional financial terms were not disclosed.
Announcing the transaction, Steven W. King, president and CEO of Peregrine, said, "This licensing agreement with Affitech is an excellent opportunity for both companies. The selective anti-VEGF antibodies we have been jointly developing with Affitech hold significant clinical promise and we are pleased that Affitech will now have the opportunity to develop and commercialize them on behalf of both companies. This agreement will allow us to realize positive short-term cash flow and at the same time maintain an interest in the significant upside potential of the anti-VEGF program. This agreement fits very nicely with our announced corporate strategy to monetize and advance our preclinical pipeline through partnerships or licensing agreements, while focusing our R&D efforts on advancing our later-stage clinical programs highlighted by our bavituximab Phase II cancer program, which is already generating promising clinical data."
Commenting on the licensing agreement, Dr. Achim Kaufhold, chief executive officer of Affitech, said, "Using advanced phage display technologies, Affitech successfully identified fully human, potent and selective anti-VEGF antibodies as part of a previous research and development collaboration with Peregrine. As a result of the recently completed reverse acquisition of Pharmexa, Affitech has now added product development expertise to its drug discovery capabilities.
