Aventis and MLNM inflammation deal
AVE and Millennium (MLNM) established a multi-faceted pact covering joint development of drugs for inflammation, joint development of new drug discovery technologies, transfer of parts of MLNM's technology platform to AVE, and equity investments. As part of the deal AVE will buy $250 million of MLNM common stock, consisting of $150 million upfront with two $50 million purchases next year.
The companies will jointly develop and commercialize compounds to treat such inflammatory diseases as rheumatoid arthritis, asthma and chronic obstructive pulmonary disease, multiple sclerosis and inflammatory bowel disease. The companies will share development costs and revenues in North America. Outside of North America, AVE will develop and market products and pay MLNM royalties. Product candidates that the companies choose not to develop jointly may be developed by either company, with a royalty obligation to the other. While the alliance will focus on the discovery of small molecule drugs, MLNM will retain the rights to develop antibody drugs and predictive medicines, while AVE will retain rights to develop gene therapy and vaccine products. ...