Domantis, Bristol-Myers Squibb form partnership

UK firm Domantis, 36 per cent owned by Peptech (ASX:PTD), has signed an agreement with global pharma Bristol-Myers Squibb (NYSE:BMY) to develop domain-antibody (dAb) therapeutics for multiple immunology and cancer targets.

Peptech executive chairman Mel Bridges said the Domantis-BMS alliance reinforced Peptech's confidence in its ally's dAb technology to deliver the next generation of therapeutic drugs.

Bridges said Domantis is continuing to meet its milestones, and expects new human dAb therapeutics will move into clinical trials in 2007.

The deal guarantees Domantis $9.2 million in up-front and guaranteed research payments, and royalties on product sales. In return, Domantis is contributing two of its developmental dAbs and will create a range of new dAbs for targets nominated by BMS, which will have the exclusive right to develop and commercialise dAb therapeutics discovered during their collaboration.

Domantis CEO Robert Connolly described it as "an exciting time" for his company. "We have created a significant revenue stream and product pipeline from our nine partner and grant programs, and we expect to close additional deals in 2006 around several of our preclinical dAb programs," he said.

"We believe this alliance could produce several novel dAb therapeutics for the treatment of important diseases, such as rheumatoid arthritis, transplantation and many others in the fields of both immunology and oncology."