Business Weekly - Cambridge, UK

The Cambridge-based pharma said that the licence, which grants GI therapeutics provider Prometheus rights to develop and market the drug in North America, has secured Alizyme an upfront payment of $2.5m (£1.2m) followed by additional payments of up to $15m (£7.2m) dependent on future milestones.

Under the terms of the agreement, Prometheus will initiate the clinical development of Colal-Pred in the US with a Phase II study for ulcerative colitis, planned for the first half of 2008.

Prometheus will also bear commercialisation costs in the region, which includes the USA, Canada and Mexico, and pay royalty rates to Alizyme which increase with higher annual net sales of the drug.

Alizyme said that the US firm anticipates filing a new drug application (NDA) with the USFDA in 2011.

"This partnership with Prometheus marks an important step in the commercialisation of Colal-Pred in North America in parallel with our own development and commercialisation plans in Europe and the Rest of the World," said Alizyme's CEO, Tim McCarthy.

"In addition we remain focused on delivering further commercialisation deals across the remainder of the product portfolio."

Shares in Alizyme have seen a rise of over four per cent, growing by 3.5p to 81.25p.