PTC Therapeutics, CV Therapeutics sign license arrangement

By Elaine Rigoli

Tampa, Fla., June 12 - PTC Therapeutics, Inc. and CV Therapeutics, Inc. have entered into an exclusive research collaboration and licensing arrangement to develop orally bioavailable small molecules through the application of PTC's proprietary GEMS (gene expression modulation by small molecules) technology.

Under the collaboration and license agreement, CV Therapeutics will make an initial payment to PTC of $10 million. The initial payment consists of a cash upfront payment of $2 million and two loans for a total of $8 million.

One of the loans is forgivable over the course of the research term provided the agreement remains in effect, and the other is convertible into PTC equity, according to a news release.

CV Therapeutics has the exclusive option to enter into one or more worldwide, exclusive licenses, on a target-by-target basis, for collaboration compounds it decides to take forward, and will be obligated to pay PTC royalties on worldwide net sales of products developed pursuant to the collaboration.

If CV Therapeutics licenses and commercializes a product based on each of the five selected targets during the term of the agreement, PTC could earn milestone payments of up to $335 million if all specified development, regulatory and commercial goals are achieved over the product life cycle.

PTC retains the option to co-fund research and development for increased royalties or co-promotion rights, the release said.

CV Therapeutics, based in Palo Alto, Calif., is a biopharmaceutical company focused on applying molecular cardiology to the development of small-molecule drugs for the treatment of cardiovascular diseases.

PTC is a biopharmaceutical company based in South Plainfield, N.J.

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