SurModics also became PR Pharmaceuticals’ partner for InsuLAR.
SurModics acquired a portfolio of intellectual property and collaborative drug delivery projects from PR Pharmaceuticals for $3 million in cash. The companies are also partnering on the development of PR Pharmaceuticals’ preclinical InsuLAR™, a once-a-week sustained-release formulation of basal insulin.
These agreements strengthen SurModics’ drug delivery technology portfolio and allows PR Pharmaceuticals to focus on its internal programs. SurModics could pay up to an additional $6 million in cash upon the successful achievement of certain milestones under the acquisition deal.
SurModics points out that the takeover transaction broadens its portfolio in systemic drug delivery including protein delivery. The purchased IP enables delivery of injectable microparticles through smaller gauge needles, which is particularly relevant in ophthalmology applications. Smaller needles also have an advantage in other applications requiring subcutaneous or intramuscular injections and in particular where patient self-administration is desired, Surmodics notes.
The deal also expands SurModics’ customer base and is expected to be accretive to fiscal 2009 earnings. “The multiple customer development programs we are assuming in this transaction are a strong fit with the diversified portfolio of customer projects at Brookwood and will further leverage the investment we are making in cGMP manufacturing facilities in Birmingham,” remarks Bruce Barclay, president and CEO of SurModics. “Further, with the addition of these new technologies, SurModics is poised to drive customer programs and long-term revenue even more effectively.”
Proteins and other large molecule therapeutics are of strategic interest to many biotechnology and pharmaceutical companies, but pose significant challenges for drug delivery. The PR Pharmaceuticals technologies will complement those of SurModics and its Brookwood Pharmaceuticals business unit and broaden the overall technology portfolio for the benefit of current and future customer projects.
With regard to the joint development of InsuLAR, Steve R. Howe, chairman and CEO of PR Pharmaceuticals, says “Collaboration with the technical team and the cGMP manufacturing infrastructure at Brookwood will help ensure successful development and commercialization of InsuLAR as well as provide for a smooth transition for current PR Pharmaceuticals customers. While our immediate focus is commercialization of InsuLAR, we anticipate working with SurModics on other collaborative programs in the future.”