Maxygen receives $5 million milestone payment from Roche

By Angela McDaniels

Seattle, Dec. 14 - Maxygen Inc. said it has earned a $5 million milestone in its collaboration with Roche to develop interferon alpha protein therapeutics for the treatment of hepatitis C virus and hepatitis B virus infections.

In May 2003, Roche licensed worldwide commercialization rights to specific novel interferon alpha product candidates developed by Maxygen for hepatitis B and C.

Based on the continued successful development of the novel interferon alpha product candidates and the achievement of predefined goals, Maxygen could receive additional milestone payments in addition to royalties on product sales.

Maxygen and Roche are completing late-stage preclinical studies and expect to enter clinical development in 2006, the company said.

Under the terms of the agreement, Maxygen has the option, prior to the start of phase 3 clinical trials, to co-fund product development and commercialization in the United States in exchange for profit sharing or an increased royalty rate.

Both companies have the option to expand the collaboration to develop other novel interferon alpha products for indications outside of hepatitis, including oncology, autoimmune diseases, inflammatory diseases and other infectious diseases such as HIV.

Maxygen retains the right to develop such products while Roche may elect to acquire worldwide license and commercialization rights to these product candidates in exchange for milestone payments and royalties on commercialized products.

Total global interferon alpha sales for all indications were in excess of $2.5 billion in 2004 and may reach $5.8 billion by 2010, the company said.

Redwood City, Calif.-based Maxygen develops human therapeutic products using its integrated proprietary technologies and protein pharmaceuticals.

Roche develops pharmaceuticals and diagnostics and has headquarters in Basel, Switzerland.

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