IDT scores Pfizer contract

The Institute of Drug Technology (ASX: IDT) has scored a multi-million dollar contract with Pfizer to develop and manufacture a new drug candidate.

The contract includes process development and manufacture of active pharmaceutical ingredients, manufacture of sterile and solid dosage formulations, and labelling and packaging of products for clinical trials.

"We think it's pretty exciting," said IDT CEO Dr Graeme Blackman. "It's always good when a moderately sized Australian company can link up with a major pharmaceutical company."

Blackman said that Pfizer, which has had a relationship with IDT stretching back over a number of years, chose the Australian company for its expertise in working with drugs requiring containment.

"This is a drug that requires a high level of containment - you can't manufacture it in an open environment or laboratory. IDT is one of a small handful of companies that have the capacity and expertise to handle these kinds of drugs," he said.

Blackman said he anticipated that the work would continue over several years, depending on the progress of the drug candidate. As the project is on a fee-for-service basis, revenues are likely to flow into the company almost immediately.

The market responded positively to the announcement, with IDT's share price rising almost 15 per cent to AUD$2.17 at the time of writing.