Banyu Pharmaceutical Co. Ltd and Pharmacia Corporation have signed an agreement for the development and commercialisation of Banyu's proprietary anticancer compound J-107088 on a worldwide basis excluding Japan.

J-107088 is a novel, non-camptothecin, DNA topoisomerase-1 inhibitor that belongs to a class of compounds known as indolocarbazoles. J-107088 is currently in Phase II clinical trials in the United States. Phase I clinical trials have just been completed in Japan.

Under the terms of the agreement, Pharmacia receives exclusive rights to develop and market J-107088 on a worldwide basis with the exception of Japan. Pharmacia will provide an upfront payment to Banyu and will make additional payments based on the achievement of certain development and regulatory milestones. The agreement also provides for royalty payments based on sales of J-107088. Banyu has agreed to serve as the commercial supplier of J-107088 active ingredient. Specific financial details were not announced.

"We are pleased to partner with Pharmacia, a company with a great deal of knowledge and experience in the field of anti-cancer drugs. We hope that this new anti-cancer compound discovered at our Tsukuba Research Institute will be commercialized and made available as soon as possible to assist the patients in overseas markets," said Satoshi Yamamoto, Head of Research & Development Division of Banyu.

"We are very pleased that Banyu has selected Pharmacia as its partner for the development and marketing of J-107088," said Gabriel Leung, Pharmacia's Group Vice President, Global Oncology. "We are excited about the developing profile of this novel anti-cancer agent and its potential to extend our leadership in the treatment of colorectal and other cancers."

In clinical studies conducted to date, J-107088 has shown activity as a single agent in colorectal cancer, esophageal cancer and other solid tumors. Pharmacia expects to initiate clinical trials in 2003 in multiple tumor types including colorectal cancer.

As a member of the group led by Merck & Co. Inc, one of the largest pharmaceutical companies in the world, Banyu discovers, develops, and provides superior medicines which bring the true benefits to the patients, under its corporate mission of working "for the patients."