Neurosciences Victoria signs three-year deal with Schering

Neurosciences Victoria (NSV) and Schering at the end of June announced that they had entered into a three year research collaboration focusing on drug discovery and target evaluation for neurodegenerative diseases.

Prof William Hart, CEO of NSV, said that the agreement was signed in Germany recently, after 12 months of negotiations.

"It was terrific to get it signed off," he said, explaining that the collaborative agreement was very complex.

"It's a new kind of relationship for Schering," he said.

Under the terms of the agreement, Schering will provide funding for 30 new scientists to be employed to work in Victoria on a portfolio of diseases including stroke, multiple sclerosis, Alzheimer's disease, Parkinson's disease and amyotrophic lateral sclerosis.

Scientists will be based at the University of Melbourne, Monash University, the Austin's National Stroke Research Institute, and at WEHI.

The focus of the research will be twofold, according to Hart, and will include discovery projects looking for drug targets, as well as developing and using disease models to test drug candidates.

"We are convinced that this type of research partnership will foster our strength in neuroscience and will eventually open a new horizon of treatment alternatives - such as recovery enhancing compounds - to those patients who currently cannot be satisfactorily treated with symptomatic treatments currently available," said Prof Björn Wallmark, head of corporate research at Schering.

"We are delighted to strengthen our extensive research network through this unique type of collaboration."

Prof Ed Byrne, chairman of NSV, said that the drug development process for neurodegenerative diseases would be significantly enhanced by the combination of Schering's technology and knowledge of drug discovery with NSV's scientific skills.

Schering will get first rights to negotiate licences for any IP that comes out of the collaboration, according to Hart. This could also lead to royalties for the consortium if drugs are commercialised, he said.

But ownership of the IP will remain with NSV, Hart added.

The possibility of collaboration between NSV and Schering was first raised more than a year ago.

"Schering was looking for opportunities in neurobiology and NSV was looking for partners in drug development," said Hart.

He said that Schering had been attracted to NSV because of its "one-stop shop" collaborative approach to neuroscience research.

"The next thing is to create some new intellectual property and begin the process of drug development," said Hart.

Although Schering and NSV declined to state the value of the agreement, a report in the Australian Financial Review last year said that the agreement was worth $25 million.