Eqitx, Vaccine CRC join to take vaccine to market

Perth-based biotechnology company EqiTX (ASX:EQX) and the CRC for Vaccine Technology (CRC-VT) have joined forces to develop and commercialise the CRC's lipopeptide vaccine technology.

EqiTX will invest up to AUD$3.5 million into joint venture company VacTX over the next couple of years, eventually owning 50.5 per cent of the company. The first $1 million payment has already been paid, and EqiTX chairman Noel Chambers said the remainder would be spaced out over the next couple of years, with the option of accelerating payments if necessary.

The CRC-VT will exclusively license the vaccine technology to VacTX for development of human applications, retaining the right to develop animal applications.

According to the executive chairman of the new company, ex-Pfizer and SmithKlineBeecham executive Kevin Fahey, the company's platform is based on a number of vaccine prototypes developed by CRC-VT scientist Assoc Prof David Jackson, a researcher at Melbourne University. Jackson will continue to work on the project as VacTX's chief scientist in labs to be established by the company at the university.

The CRC-VT technology involves assembly of specific peptides with lipids that cause the immune system to respond as if it had been challenged with an infection, with both cellular and antibody-based responses triggered. The lipopeptides are completely synthetic and very chemically defined.

In addition to use as a vaccine against infectious organisms including bacteria and viruses, the technology can be used against cancer and biologically active molecules like hormones. The company is also considering the development of lipopeptides as a replacement for therapeutic monoclonal antibodies used to treat chronic inflammatory diseases, such as the anti-TNF antibody products Humira and Remicade used to treat arthritis.

But before the company moves ahead, a strategy will be formulated to prioritise projects, Fahey said. Prototypes up for consideration as initial candidates for product development include an influenza vaccine capable of inducing a cytotoxic T cell-based immune response, and a vaccine active against luteinising hormone releasing hormone (gonadotropin releasing hormone), which may have applications as a treatment for prostate cancer.

Fahey said he expected the company would go forward with two or three vaccine prototypes in-house, with the possibility of collaborating on other projects.

He said the company would probably look at opportunities for additional funding under such programs as the US Department of Homeland Security's vaccine program, which includes influenza, and through collaborations and partnerships with other companies.

CRC-VT CEO Prof Anne Kelso said she was delighted to be working with EqiTX on the joint venture. "It's our first spin-off from the CRC and it's a good one," she said.

Previous deals on CRC-VT intellectual property have been limited to licensing agreements, she said, but the scope of the lipopeptide technology was broad enough to look at further development.

Kelso and fellow CRC-VT deputy director Prof Richard Strugnell will join Fahey and Chambers on the board of the new company.