Autogen strengthens Merck-Sante partnership

Autogen has signed two more commercialisation and licensing deals with partner Merck-Sante for genes related to diabetes and obesity, bringing to four the number of gene targets selected for fast-tracked development by Merck.

"The deals cement into place the commercialisation of these genes; they've been fast-tracked into Merck's development program and it also consolidates the royalty plan," said Autogen CEO Prof Greg Collier. Autogen will receive five to seven per cent royalties on any therapeutics developed by Merck using the genes as targets for drug development.

"It's really a recognition of our progress... and adds to our pipeline of discovery for obesity and diabetes," Collier said.

One of the two genes, AGT203, brought Autogen a $AUD1.39 million milestone payment from Merck last month. The gene is a muscle-specific diabetes related gene and the company has identified a human variant of the gene linked to insulin resistance.

The other gene, AGT121, is a "very exciting gene for obesity," according to Collier, and is a brain-specific gene with a possible role in signalling. He said the gene was currently being further characterised and had a putative role in regulating satiety.

Merck will continue characterisation and development of the two genes using its own resources and technologies in addition to Autogen's eXpress Technology platform.

Previous commercialisation deals with Merck have involved the Tanis and Beacon genes. The company has a portfolio of 49 diabetes and obesity-related genes in various stages of development and patent protection, according to business development manager James Campbell.