UCB And WILEX To Enter Into Strategic Alliance To Develop UCB's Preclinical Oncology Portfolio

Main Category: Cancer / Oncology
Also Included In: Pharma Industry / Biotech Industry
Article Date: 09 Jan 2009 - 2:00 PDT

email to a friend   printer friendly   view / write opinions

UCB Pharma S.A. (UCB) and WILEX AG, a company specialising in the development of drugs and diagnostic agents for cancer (WILEX), today announced that they have agreed to enter into a strategic partnership.

WILEX will acquire world-wide rights to develop UCB's entire preclinical oncology portfolio, comprising two small-molecule programmes and three antibody programmes.

UCB retains exclusive rights to re-purchase each of the five programmes, following completion of initial clinical feasibility studies for each programme, and assume the responsibility for further development and commercialization of each product. In this case, WILEX will receive development and commercialisation milestone payments and royalty payments from UCB.

Alternatively, in the event UCB does not exercise its re-purchase right for each programme, WILEX will retain rights to develop as well as commercialize each programme and UCB will receive milestone and royalty payments from WILEX.

As a strategic investor, UCB will invest EUR 10 million in WILEX upon closing and will also make milestone payments of EUR 10 million in total upon application of clinical Phase I trial and first dose in man, expected within approximately twelve months upon closing.

"WILEX is the ideal strategic partner for developing our promising preclinical oncology portfolio," said Dr Melanie Lee, Executive Vice-President UCB and President UCB NewMedicines. "This alliance will give UCB the opportunity to focus our R&D priorities in our core indication areas, central nervous system and immunology, as defined in UCB's SHAPE programme, while benefiting from WILEX's comprehensive oncology expertise, focus and know-how."

Professor Olaf G. Wilhelm, Chairman of the Executive Management Board of WILEX AG, commented, "The strategic alliance with UCB is an important step in WILEX's history. UCB's innovative preclinical oncology portfolio ideally supplements and expands our advanced clinical pipeline whilst providing access to UCB's broad antibody technology. We have gained in UCB, not only an important development partner, but also a strong strategic investor which will help to further the development of our company."

Under the agreement, UCB has granted the rights to the five preclinical oncology programmes to a new legal entity wholly owned by UCB. The new entity will be funded by UCB with EUR 10 million in cash and will be acquired by WILEX in consideration for 1 818 181 newly issued shares in WILEX from its authorised capital, subject to the exclusion of shareholders' subscription rights. This transaction will provide UCB with approximately 13% ownership of WILEX AG (WILEX total new share capital: 13 780 935 shares) at closing of the transaction.

The strategic alliance has been approved by both the UCB and WILEX boards. The relevant capital increase of WILEX AG is, however, subject to the approval of WILEX boards and will take effect at the time it is recorded in the Company's Commercial Register.

The parties agreed not to disclose further details of the transaction.

Looking forward statements

This communication contains certain forward-looking statements relating to the Company's business, which can be identified by the use of forward-looking terminology such as "estimates", "believes", "expects", "may", "will" "should" "future", "potential" or similar expressions or by a general discussion of the Company's strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results of operations, financial position, earnings, achievements, or industry results, to be materially different from any future results, earnings or achievements expressed or implied by such forward-looking statements. Given these uncertainties, prospective investors and partners are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such forward-looking statements to reflect future events or developments.

UCB Pharma S.A.