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GEN News Highlights : Oct 4, 2007

MacroChem to Pay Upwards of $42M for Rights to Genaera’s Anti-Infective

Company plans to develop the peptide drug for the treatment of mild diabetic foot infections.

MacroChem has exercised the option it acquired in July to develop Genaera’s late-stage anti-infective for mild diabetic foot infection. Macrochem will make an initial payment of $1 million through February 1, 2008 and could provide over $42 million in milestone fees.

Macrochem thus gains the exclusive, worldwide license to Genaera’s small peptide drug, pexiganan. “We believe this is a unique opportunity for MacroChem to broaden its product portfolio with a product that has already completed two Phase III trials,” states Robert J. DeLuccia, president and CEO of MacroChem. He also points out that the product complements the company’s lead candidate, EcoNail®, for treatment of nail fungus.

Under the terms of the agreement, Genaera will receive $7 million upon the achievement of certain clinical and regulatory goals. The company is also entitlted to sales-based milestones of up to $35 million and 10% royalty payments on net sales. MacroChem will assume all clinical development, manufacturing, and regulatory activities for pexiganan.