Micrologix, Strata antibiotic deal

Micrologix (TSE:MBI; MGIXF) granted to Strata (San Diego, Calif.) exclusive European and North American development and marketing rights to MBI-226, a topical antimicrobial cationic peptide to prevent catheter-related infections. Under the deal, MBI will receive C$2 million ($1.5 million) in cash up front, and Strata will buy C$650,000 ($500,000) worth of MBI shares at C$1.08. MBI is eligible for up to C$40 million ($30 million) in milestones and a double-digit royalty on net sales. In addition, Strata will pay clinical, regulatory and commercialization costs for MBI-226 and will manufacture MBI-226.

Last year, Fujisawa Healthcare (Deerfield, Ill.), returned its rights to the compound after it failed to show superiority over povidone iodine, the standard of care, in a Phase III trial to prevent central venous catheter-related bloodstream infections (see BioCentury Extra, Wednesday July 23, 2003). ...