Phylogica signs licensing deal, collaborates with UWA

Phylogica (ASX:PYC) has signed a licensing deal with Massachusetts General Hospital and Johns Hopkins University to give the Perth-based company access to a new genetic screening technology.

The new yeast two-hybrid screening technology will augment Phylogica's existing yeast two-hybrid screen for identifying phylomers (protein fragments) that block the interactions of proteins involved in inflammatory diseases, such as stroke and diabetes.

"Sometimes it's better to license than to invent around things," said Phylogica CEO Stewart Washer.

He said that the global non-exclusive license gives Phylogica the "freedom to operate right through the yeast two-hybrid technology in the most efficient way."

While the terms of the license have not been revealed, Phylogica considers them to be favourable and unlikely to place a significant burden on its cash resources.

"They asked us to keep it confidential," said Washer. "Obviously what they don't want is one licensee comparing prices with another. We got a very nice deal from them, and I think that's why they want to keep it confidential as well."

UWA collaboration

Phylogica has also signed two research collaborations with the University of Western Australia (UWA), giving the university access to Phylogica's screening technology.

UWA will screen Phylogica's library to identify phylomers that discriminate between proteins that are phosphorylated or unphosphorylated.

Phosphorylation, or the addition of a phosphate group(s) to a specific site on a protein, can alter the activity of the protein and trigger cellular 'switches'.

"Lots of proteins involved in diseases are phosphorylated or unphosphorylated, and that's what's crucial in their disease state," said Phylogica's scientific director Paul Watt.

For example, phosphorylation of the jun protein has been shown to be critical in making it oncogenic and thus causing cancer, said Watt.

The first project with UWA will consider cancer, with a focus on proteins involved in leukaemia, and the second project will look at stroke.

"That's just the tip of the iceberg," said Watt.

"If we can use this powerful genetics to isolate drugs that can discriminate between different phosphorylation states that would be pretty huge, in terms of specificity and few side effects."

Phylogica and UWA will jointly own the intellectual property from these projects.