Grifols, Aradigm announce agreement to develop new bronchiectasis therapy
May 21, 2013 |
Grifols of Spain and California-based Aradigm Corp. today announced the signing of an exclusive, worldwide license for Aradigm’s proprietary formulations of inhaled ciprofloxacin (Pulmaquin and Lipoquin) for the treatment of severe respiratory diseases, including non-cystic fibrosis bronchiectasis. Aradigm has completed Phase 2b clinical trials in bronchiectasis patients with Pulmaquin and Lipoquin.
Igor Gonda, PhD, chief executive officer and president of Aradigm, is a member of the Board of The Alpha-1 Project, a wholly-owned for-profit subsidiary of the Alpha-1 Foundation.
Bronchiectasis is a chronic condition characterized by abnormal enlargement of the bronchial tubes associated with chronic respiratory infections. Aradigm has been granted orphan drug designation for BE in the U.S. and there is currently no drug specifically approved for the treatment of this condition.
In a regulatory filing, Grifols said it will invest up to $65 million to help develop the compound and may spend $25.7 million to buy a 35 percent stake in Aradigm.
Under the terms of the transaction:
- The parties have agreed to advance Aradigm’s proprietary inhaled ciprofloxacin formulations into Phase III clinical trials in BE.
- Grifols will be responsible for all development and clinical expenses up to a maximum of $65 million for the BE indication.
- Aradigm is entitled to receive cash payments of up to $25 million upon achievement of development milestones.
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