Phenomix signs collaboration deal with Genentech

Canberra and San Diego-based Phenomix has signed a multi-year collaboration agreement with Genentech to identify and prioritise drug target for immune disorders.

The agreement will see Phenomix identifying new gene targets for immunological disorders using its novel forward genetics approach to identify targets shown to reverse disease in mammalian models.

"Basically it involves using Phenomix's technology for scanning the genome for targets that cure or correct immune disorders," said Phenomix's chief scientific officer Prof Chris Goodnow. "It's a very ambitious program -- there is really nothing like it. We will troll through the whole genome in a stepwise manner. It's an opportunity to identify real in vivo targets that work."

Goodnow said the company expected to start producing targets from year one of the program. The two companies will work together as appropriate on R&D, with Genentech responsible for development, manufacture and commercialisation of therapeutics emerging from the collaboration.

"There is a beautiful complementarity between the research teams at Phenomix in Canberra and San Diego, and at Genentech. It's a great deal both business-wise and science-wise," Goodnow said.

In addition to an upfront payment, Genentech is making an equity investment into Phenomix -- the company will also receive research funding and future milestone payments on products developed and commercialised by Genentech. In return, Genentech will get worldwide exclusive rights to develop and commercialise therapeutics for the treatment of immune disorders. Phenomix will also retain rights to develop products based on certain targets that fit in with their own programs, particularly in small molecule drugs.

Goodnow said Phenomix was moving toward completing a series B financing round. The company raised US$32 million in series A financing from a consortium of US and Australian companies.