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Praecis, UCB suspend production of Plenaxis ingredients
By Lisa Kerner
Erie, Pa., Jan. 19 - Praecis Pharmaceuticals Inc. said UCB SA has agreed to suspend supplying Praecis with ingredients necessary for production of the drug Plenaxis in exchange for certain payments.
Under a previous agreement, UCB was to supply commercial volumes of the active pharmaceutical ingredient for Plenaxis, according to an 8-K filed with the Securities and Exchange Commission.
UCB has agreed to suspend certain process development activities in exchange for $130,000 for work completed on process improvements related to the drug production. Praecis can resume the process improvements at any time prior to Dec. 31, 2007 and would pay UCB an additional $84,000 upon completion of the improvements.
Under their original agreement, Praecis had committed to buy a specified quantity of active pharmaceutical ingredient for delivery in 2005 for a total purchase price of $3.9 million. An initial milestone payment of $1.8 million was paid in 2004, with the remaining $2.1 million payment due upon Dec. 31, 2005 or the delivery of the active pharmaceutical ingredient.
Under a new agreement, UCB has agreed to suspend the 2005 manufacturing of the pharmaceutical ingredient and store until Dec. 31, 2007 at no charge to Praecis the inventory. Praecis paid UCB $1.5 million for the work completed to date on the 2005 manufacturing campaign.
Praecis said it may resume the 2005 manufacturing campaign at any time prior to Dec. 31, 2007. If it does, the company will pay UCB an additional $600,000, representing the remaining amount due for the 2005 contract.
Praecis is a biopharmaceutical company based in Waltham, Mass.
UCB is a global biopharmaceutical company with headquarters in Brussels, Belgium.
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