The Chao Center, Rodelis Therapeutics deal
Nonprofit Chao Center reacquired rights from Rodelis to Seromycin cycloserine, an antibiotic to treat tuberculosis. The center said it sold the rights to Rodelis on Aug. 19 but requested that Rodelis return the rights after Rodelis raised the price of the drug to $360 per capsule from $16; a twentyfold increase it said was “not consistent with the Chao Center’s expectations or vision.”
The Purdue Research Foundation (West Lafayette, Ind.), an affiliate of the center, declined to disclose financial terms of the rights transfer but said “there was no money made on either end.” The foundation said cycloserine was approved in 1955 and that patent protection for the drug expired long ago. Chao Center acquired rights to cycloserine in 2007 from its original developer, Eli Lilly and Co. (NYSE:LLY, Indianapolis, Ind.). The foundation said it would increase the drug’s price to $35 per capsule and noted it has lost over $10 million since 2007 on cycloserine, but said the new price should allow the organization to break even. ...