AtheroGenics signs licensing deal with AstraZeneca for atherosclerosis drug worth up to $1 billion

By Angela McDaniels

Seattle, Dec. 22 - AtheroGenics Inc. said it has entered into a licensing deal with AstraZeneca for the global development and commercialization of its atherosclerosis product candidate AGI-1067.

Under the terms of the agreement, AtheroGenics stands to gain up to $1 billion. The company will receive an upfront fee of $50 million and is eligible for development and regulatory milestones of up to $300 million and sales-performance related milestones of up to $650 million.

AtheroGenics said it will also receive stepped royalties on product sales.

AstraZeneca will be responsible for all non-U.S. regulatory filings and will oversee pre-commercialization activities, marketing, sales and distribution of AGI-1067 on a worldwide basis.

It will also fund, for a minimum of three years, a 125-person AtheroGenics specialty sales force that will co-promote AGI-1067 and one other AstraZeneca cardiovascular drug in the United States.

AtheroGenics said it will retain responsibility for AGI-1067's ongoing phase 3 clinical trial and for regulatory filings in the United States. Both parties will contribute scientific and commercial expertise to the project.

"The benefit of this collaboration goes well beyond the obvious financial rewards and gives us the opportunity to access AstraZeneca's commercial expertise as we establish our own sales and marketing group in preparation for the next phase of our corporate growth," AtheroGenics president and chief executive officer Russell M. Medford said in a company news release.

Commercialization of AGI-1067 would provide AtheroGenics with the resources needed to begin its transition from a research and development organization to a commercial enterprise, the company said.

AGI-1067 is an oral compound designed to selectively block the inflammatory process in atherosclerosis, the company said. It is being investigated in a phase 3 clinical trials, the results of which will be announced in the second half of 2006.

AtheroGenics is a pharmaceutical company based in Atlanta that develops drugs for the treatment of chronic inflammatory diseases.

London-based AstraZeneca develops, manufactures and markets prescription pharmaceuticals and supplies health care services.

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