Bionomics signs deal on new pain treatments
Adelaide biotechnology company Bionomics has signed a deal with global pharmaceutical giant Merck to develop new treatments for chronic pain.
In an statement to the stock exchange today, the Thebarton-based company said it had inked an agreement with Merck to “discover and develop novel small molecule candidates for the treatment of chronic pain, including neuropathic pain”.
Under the terms of the agreement, Merck would have the the option to exclusively license a compound from Bionomics for development and commercialisation.
“In return, Bionomics may receive option exercise fees and development and regulatory milestone payments of up to US$172 million,” the statement said.
“Bionomics may also be eligible for undisclosed royalties on net sales of products from the collaboration. Bionomics retains the right to develop and commercialise certain compounds for which Merck does not exercise its option. The initial period of the research program will be two years.”
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Bionomics CEO Dr Deborah Rathjen said the deal was an exciting one for the company.
“Bionomics is continuing to deliver on its business model of strategic partnering for the development and commercialisation of selected programs within its pipeline,” she said.
Dr Sue O’Connor, Bionomics’ VP Neuroscience Research, said the collaboration was “a strong validation of our drug discovery platforms”.
According to the company’s statement, the global pain treatment market recorded sales of US$22 billion in 2010.
“However, as patent expiries loom, the global market value is anticipated by some analysts to contract to US$18.7 billion by 2016. Within the global pain market the neuropathic pain market is expected to grow from US$2.4 billion in 2010 to reach US$3.6 billion by 2020.”
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