US biotechnology company Gene Logic says it has entered into a drug “repositioning” development deal with a unit of Belgium’s Solvay.
The agreement will Gene Logic attempt to seek “alternative development paths” for multiple Solvay drug candidates which have been discontinued or de-prioritised in clinical trials because of reasons other than safety. The deal provides for milestones and royalties similar to those paid for development-stage in-licensing deals, discounted to account for Solvay’s contribution as the originator of the compound.
The agreement also gives Gene Logic the option to receive an exclusive license to any drug candidate for which it identifies a potential new therapeutic use that Solvay chooses not to develop. In that scenario, Solvay would be entitled to milestone and royalty payments.
Charles Dimmler, Gene Logic’s chief executive, said that the partnership with Solvay “is our eighth drug development agreement and provides further evidence that our systematic approach to identifying novel therapeutic indications for drug candidates is valued by the pharmaceutical industry”. It already has similar deals in place with the likes of Pfizer, Eli Lilly, Roche and Organon.