Celltech Group announced that it would regain full rights to CDP 870, its Pegylated anti-TNF-alpha antibody fragment, from Pfizer during early 2004. Following Pfizer's request to renegotiate with Celltech the financial terms of the collaboration, Celltech indicated that it was unwilling to make material changes to the terms of its agreement, originally established with Pharmacia in March 2001.
As a consequence, Pfizer has given Celltech 90 days notice of termination of its rights to CDP 870 as provided under the agreement, following which period all product development and commercialisation rights and all programme information will revert to Celltech. Pfizer has indicated that it will fully support the transfer of such material to Celltech during the 90-day period.
Celltech management believes that by regaining full control of CDP 870, the company has a unique opportunity to generate significant incremental value from its key near term asset. Celltech recently held a US investigator meeting to initiate Phase III trials with CDP 870 in Crohn's disease, and now intends to explore further specialist focused indications where TNF inhibitors have shown substantial promise, such as psoriasis, psoriatic arthritis and ankylosing spondylitis. Celltech did not have rights to explore these indications within the original agreement with Pharmacia. In parallel, Celltech will in the next few weeks review whether to out-license rights to rheumatoid arthritis to a new partner or to develop this indication in-house. Expressions of interest have been received from a number of global pharmaceutical and biotechnology companies since the previous announcement on 13th November.
Dr Goran Ando, chief executive officer of Celltech, commented: 'We are pleased with the professional and supportive attitude of Pfizer which has allowed us to rapidly conclude our discussions, and are absolutely delighted to have regained full control of CDP 870 at an advanced stage of its development. We will work quickly to determine the optimal development and commercialisation strategies in order to maximise the value of this programme to Celltech. In this regard, our strong financial profile and commercial infrastructure will afford us significant flexibility in accessing the opportunities for CDP 870.'
Celltech Group is one of Europe's largest biotechnology companies, with an innovative development pipeline funded by its profitable, cash-generative pharmaceutical business. Celltech also possesses drug discovery capabilities, including a leading position in antibody engineering.