Genesis Confirms North American Psoriasis Deal Now Completed
Potential revenues to Genesis from license of PVAC rights to Medicis Pharmaceutical Corporation may exceed US$50 million
AUCKLAND, New Zealand –4th October 2000– New Zealand’s leading biotechnology company Genesis Research and Development
Corporation Limited (NZSE and ASX: GEN) today announced that a licensing deal with a major United States pharmaceutical
firm for distribution rights to the PVAC™ psoriasis treatment which is jointly owned by Genesis and Corixa Corporation
(Nasdaq: CRXA) has been completed.
“The closing of this deal marks a big step for Genesis,“ Dr Watson said. “PVAC is a Genesis discovery. It is very
satisfying to see the high market value it commands.”
Under the agreement, Medicis Pharmaceutical Corporation (NYSE: MRX) will pay to Corixa license fees and additional fees
upon the completion of certain development and commercialisation milestones for exclusive rights to the development and
commercialisation of the treatment in the United States and Canada, which may exceed US$107 million. Genesis will
receive its share of these payments.
Further payments will be based on PVAC’s success in clinical trials and on achieving certain commercialisation
milestones.
Medicis will also pay Corixa a royalty on any future sales of PVAC. Genesis will also receive its share of these
payments, which could be very significant to Genesis.
The deal was executed by Genesis partner, Corixa Corporation. Corixa has already sold the Japanese commercialisation
rights for PVAC to Zenyaku Kogyo Pharmaceuticals, and are seeking to sell marketing rights in Europe and the rest of the
world, Dr Watson said.
“Under this arrangement with Medicis, Genesis retains certain rights in its intellectual property and gets the
opportunity to derive significant income from future sales.”
PVAC is currently undergoing Phase II trials, which are expected to be completed by the end of calendar 2000.
Sales of PVAC will be dependent on satisfactory completion of Phase III trials currently anticipated to begin in 2001
and subsequent U.S. regulatory approvals.
Medicis is the leading independent pharmaceutical company in the United States focusing primarily on the treatment of
dermatological conditions.
Their highly focused dermatology development and marketing expertise as well as their credibility among dermatology
leaders in North America are extremely important assets, ” Dr Watson said.
“These were important factors in selecting the optimal marketing path for PVAC treatment, our novel psoriasis
immunotherapeutic. This deal is a landmark for Genesis. We believe the decision by Medicis to enter the agreement with
Corixa endorses the value in PVAC and the revenues will enable us to continue expanding and progressing our vaccine
programmes.”
About PVAC
Psoriasis is estimated to affect one to three percent of the world’s population. There are approximately seven million
people in the US with psoriasis, of whom an estimated 30 percent have a moderate to severe form of the disease. The
disease is characterised by chronic inflammatory lesions with red scaling plaques and is believed to be an autoimmune
phenomenon mediated by T cells.
Genesis and Corixa have developed a potential immunotherapeutic product for psoriasis that is derivative of the
bacterium Mycobacterium vaccae (M. vaccae). The product, known as PVAC treatment, is currently in Phase II clinical
trials in the US, the Philippines and Brazil. Approximately 20 moderate to severe psoriatic patients were treated in the
initial Phase I/II clinical trial with two injections of PVAC administered three weeks apart. Of these, just over half
of the patients had complete responses to the therapy for the 52-week duration of the trial, following the two
injections given at day zero and day twenty-one. Corixa is currently conducting a 13-site trial involving 240 patients
in the US. Patient enrolment into the randomised placebo-controlled trial is completed and Genesis expects the trial to
be completed by the end of 2000.
About Genesis
Genesis is a biotechnology company based in Auckland, New Zealand, with genomic programmes in human health, forestry and
agriculture. Genesis builds EST databases that provide the genomic platform for discovery of novel genes with commercial
value and has considerable experience and expertise in high-throughput DNA sequencing, functional genomics and
development of therapeutics. Partnerships with biopharmaceutical, agricultural and forestry companies have been
important for funding research to effectively develop potential products. In addition to the extensive forestry gene
technology, Genesis is undertaking clinical trials for an asthma therapeutic in Wellington, New Zealand. For more
information, please visit www.genesis.co.nz.
About Corixa
Corixa is a research and development-based biotechnology company committed to treating and preventing autoimmune
diseases, cancer and infectious diseases by understanding and directing the immune system. Corixa is focused on
immunotherapeutic products and has a broad technology platform enabling both fully integrated vaccine design and the use
of its separate, proprietary vaccine components on a stand-alone basis. The company partners with numerous developers
and marketers of pharmaceuticals and diagnostics, targeting products that are Powered by Corixa™ technology with the
goal of making its products available to patients around the world. Corixa was founded in 1994 and is headquartered in
Seattle, Wash. For more information, please visit Corixa’s website at www.corixa.com.
About Medicis
Medicis is the leading independent pharmaceutical company in the United States focusing primarily on the treatment of
dermatological conditions. Medicis develops and markets leading products for major segments within dermatology,
including acne, fungal infections, psoriasis, eczema, rosacea, seborrheic dermatitis, head lice and cosmesis
(improvement in the texture and appearance of skin). Primary products include the prescription brands DYNACIN(R)
(minocycline HCl), TRIAZ(R) (benzoyl peroxide), LUSTRA(R) (hydroquinone), LOPROX(R) (ciclopirox), OVIDE(R) (malathion),
PLEXION(TM) (sodium sulfacetamide/sulfur), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide), TOPICORT(R)
(desoximetasone), NOVACET(R) (sodium sulfacetamide/sulfur) and A/T/S(R) (erythromycin); the over-the-counter brand
ESOTERICA(R); and BUPHENYL(TM) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle
Disorder.
ENDS