Alliance Pharmaceutical Corp., through its wholly owned subsidiary PFC Therapeutics, LLC, and Nycomed announced the signing of a collaboration agreement between PFC Therapeutics and Nycomed, a leading European pharmaceutical company, for Nycomed to develop and commercialize Oxygent in Europe.

Oxygent (emulsion) is a patent-protected synthetic oxygen carrier that Alliance has evaluated in late-stage clinical studies for avoidance of red blood cell transfusions during surgery.

Under terms of the agreement, Nycomed will be responsible for the remaining clinical and regulatory development, and future marketing of Oxygent within a broad European territory. The agreement also includes an option for Nycomed to acquire Oxygent rights for China. PFC Therapeutics will be initially responsible for commercial supply of Oxygent to Nycomed and will receive a royalty on Oxygent sales following commercialization. PFC Therapeutics retains exclusive rights to Oxygent in the U.S. and for the rest of the world.

"We are extremely pleased to have Nycomed as our partner for Oxygent development and commercialization," commented Duane J. Roth, chairman and CEO of Alliance. "The team we will be working with has outstanding credentials and a proven track record in clinical development, registration and marketing in Europe, making them an ideal fit for Alliance and for Oxygent development."

"Nycomed recognizes the importance of offering surgical clinics a possible alternative to reduce the dependency on allogeneic (donor) blood transfusion for many patients undergoing elective surgery," said Kerstin Valinder, senior vice president, International Marketing and Business Development at Nycomed. "If proven in the planned clinical trial, we believe Oxygent could represent a valuable alternative to transfusion of blood, and may also allow blood banks to better manage their limited inventory."

Burrill & Company has served as Alliance's advisor for securing the partnership with Nycomed. G. Steven Burrill, CEO of Burrill, stated, "We are pleased to see this strategic collaboration further the development of Oxygent, an important new therapeutic agent capable of extending the supply of donated blood at a time when the demand for transfusions is outpacing blood donations. It's an excellent example of international strategic partnering bringing two superb companies together to work for the benefit of patients."