OrthoLogic announces alliance with Quintiles to develop Chrysalin

By E. Janene Geiss

Philadelphia, Feb. 28 - OrthoLogic Corp. announced Tuesday the formation of a strategic alliance with Quintiles, a pharmaceutical services organization, to develop and commercialize Chrysalin (TP508), OrthoLogic's novel synthetic peptide.

Under the agreement, Quintiles will be OrthoLogic's exclusive provider of clinical research services within its range of capabilities for the development of Chrysalin, according to a company news release.

Quintiles said it also will have the right of first negotiation to promote Chrysalin, upon its approval by the Food and Drug Administration, with a specialty sales force under a fee-for-service or a risk-based structure.

The agreement also calls for Quintiles PharmaBio Development, the strategic partnering group of Quintiles Transnational Corp., to make an equity investment in OrthoLogic of up to $5 million, officials said.

This will consist of an initial $2 million investment in OrthoLogic common stock and two additional investments, at OrthoLogic's election, of $1.5 million each at the end of the second and third quarters of 2006, officials said.

OrthoLogic said it will issue warrants equal to 13% of the equity investment exercisable at a premium of 15% of the stock price at the closing of the deal, as well as incentive-based warrants for up to 240,000 shares, which will vest upon achievement of certain milestones.

"We are excited about this alliance, given Quintiles' extensive global capabilities, impressive drug development experience and deep understanding of biotech companies' unique needs," James M. Pusey, chief executive officer of OrthoLogic, said in the release.

"The financial and resource commitment from Quintiles is significant for OrthoLogic. Together we are focused on the aggressive development of Chrysalin and the strategic potential of OrthoLogic as a biopharmaceutical company," Pusey added.

Under the alliance, OrthoLogic said it will control all decisions on development and commercialization for Chrysalin. Quintiles representatives will serve on a joint development committee that will drive planning for the Chrysalin program, officials said.

Quintiles is a Research Triangle Park, N.C., pharmaceutical services company that provided professional expertise, market intelligence and innovative partnering solutions to the pharmaceutical, biotechnology and health care industries.

OrthoLogic is a Tempe, Ariz., biotechnology company focused on the development and commercialization of the novel synthetic peptide Chrysalin (TP508) in two lead indications, both of which represent areas of significant unmet medical need - fracture repair and diabetic foot ulcer healing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.