CoTherix licenses rights to vascular drug Fasudil from Asahi Kasei for $8.75 million

By E. Janene Geiss

Philadelphia, June 28 - CoTherix, Inc. and Asahi Kasei Pharma Corp. said Wednesday that the companies have entered into an agreement granting CoTherix exclusive rights in North America and Europe to develop and commercialize oral and inhaled formulations of Fasudil, a rho-kinase inhibitor, for the treatment of pulmonary arterial hypertension.

CoTherix said it also has acquired exclusive rights to develop and commercialize oral formulations of Fasudil for the treatment of stable angina in the same territories, according to a company news release.

Under the agreement, CoTherix said it will make an upfront payment of $8.75 million to Asahi Kasei Pharma, plus development and revenue milestone payments and royalties on future products.

CoTherix said it also has an option to develop Fasudil in North America and Europe for other potential indications using the licensed formulations with the exception of stroke and eye diseases.

The crucial role that rho-kinase plays in the pathophysiology of vascular diseases, such as pulmonary hypertension, stable angina and atherosclerosis, has been established in preclinical and emerging clinical research over the last decade.

In addition, results from in vitro and in vivo studies suggest that rho-kinase inhibitors, such as Fasudil, can reduce vasoconstriction and cell proliferation, officials said.

An intravenous formulation of Fasudil was approved in June 1995 in Japan and is marketed by Asahi Kasei Pharma for the prevention of cerebral vasospasm in patients with subarachnoid hemorrhage.

CoTherix said it expects 2006 sales, general and administrative and research and development expenses to be between $91 million and $98 million.

This includes Fasudil acquired product rights of $8.75 million and non-cash stock option expenses under SFAS123 of between $8 million and $9 million.

The increase in expenses is substantially attributable to the upfront payment, additional investments in clinical trials and other costs related to the development of Fasudil, officials said. CoTherix said it expects total cash and cash equivalents and securities available-for-sale at the end of 2006 to be between $53 million and $63 million.

CoTherix is a South San Francisco, Calif., biopharmaceutical company focused on products that treat cardiovascular disease.

Asahi Kasei is a Tokyo health care company.

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