Biogen Idec, Isis Pharma In Pact for Drug to Treat Steinart Disease

   By Chelsea Stevenson 
 

Biogen Idec Inc. (BIIB) and Isis Pharmaceuticals Inc. (ISIS) entered into an agreement to develop and commercialize an antisense drug to treat Steinert disease, a deal that could see Isis receive more than $271 million.

Steinert disease, formally known as Myotonic dystrophy type 1, is a form of muscular dystrophy in adults and is often genetic. It is characterized by progressive weakness and disabling muscle spasms, which can prevent protein production and cause problems with breathing and walking.

Isis is responsible for the discovery of the drug and the treatment. The antisense technology company will receive an upfront payment of $12 million, with the eligibility to receive $59 million more in milestone payments prior to licensing. It could see an added $200 million in licensing fees.

Biogen Idec will be responsible for advice on the design of the Phase II trial and could assume commercialization responsibilities, upon completion of the trial.

"The unmet need is great, and there are currently no therapies to slow or stop progression of the disease," said Steven H. Holtzman, Biogen executive vice president of corporate development at Biogen Idec.

In May, Isis recorded an increase in revenue for its first quarter, as it submitted an application to the Food and Drug Administration for new drug for patients with cardiovascular disease, Kynamro. The drug would be the company's first important commercial asset.

Meanwhile, Biogen Idec's first-quarter earnings rose 2.8%, missing Wall Street expectations after the company's flagship drug ran into a temporary wholesale purchasing slowdown in the U.S. Sales for other products were also nicked by a voluntary recall, though its experimental pill for multiple sclerosis could hit the market early next year, making its product pipeline a big focus.

Isis shares were up 2.9% to $11.98 in recent premarket trading. Shares closed Thursday at $140.11 for Biogen Idec. The stock markets are up 27% and 28% respectively over the last 12 months.

Write to Chelsea Stevenson at [e-mail]