Norwood makes a deal with Monash

Immunology therapies group Norwood Abbey (ASX:NAL) has announced a research agreement with Monash University to develop and market its thymic manipulation technologies.

The agreement covers a project looking at the use of GnRH analogue drugs to re-grow the thymus gland in adults and induce the production of new T cells to boost immunity.

The therapies are already in clinical trial under the terms of an earlier agreement with Monash.

But in the latest deal, the company will have exclusive worldwide rights to develop and exploit the technologies as they emerge.

In return, Monash is set to receive royalty and licensing fees as well as $1 million from Norwood Abbey in the agreements first year with milestone payments of up to $3 million over three years.

In an announcement to the Australian Stock Exchange, the company said the new research program would concentrate on five areas.

This included the manipulation of thymic development and function through use of haemopoietic stem cells; the enhancement of bone marrow stem cells; the discovery of genes effecting thymic and bone marrow function; identification of a diagnostic indicator of thymic activity; and the application of the findings to autoimmune diseases, cancer, transplantation and vaccination.

The company announced its Monash agreement had been undertaken with Professor Richard Boyd, who had committed to the project for five years and who has been offered an option to buy up to 10 per cent Norwood Abbey's interest in the immunology project by December 2006.

It also said the company was in advanced discussions with pharmaceutical companies, scientific research groups and biomedical investors, over the funding of the project, as well as the rights to GnRH analogue drugs.