Debiopharm S.A., the independent drug development company specialising in oncology, endocrinology and niche products, along with its wholly owned investment affiliate, Debioinnovation, and Neovacs S.A., a French biotechnology company specializing in the development of proprietary anti-cytokine immunogens, signed a license and equity agreement for the development of a TNF (tumour necrosis factor) alpha kinoid and its related technology programmes.

The potential indications include wasting syndromes such as cancer cachexia and autoimmune diseases. Debiopharm will fund and develop at least one indication until completion of phase IIb before out-licensing to sales and marketing partners.

Under the terms of the agreement, Debiopharm and Debioinnovation will make upfront and milestone payments, in both cash and equity, at various stages of the development. In addition, Debiopharm will fund the entire development of the product. Upon commercialisation of the product, Neovacs will receive staggered royalties based on Debiopharm's revenues from worldwide sales.

Cachexia is a debilitating state of involuntary weight loss, which complicates malignant, infectious and inflammatory diseases and contributes significantly to mortality. Cachexia is associated with a chronic systemic inflammatory response and with the increase of acute phase proteins. Proinflammatory cytokines are linked to all pathways that induce cachexia.

Cancer patients with a known involuntary weight loss of 5% have a shorter median survival rate than patients whose weight is stable. Patients with cachexia do not respond well to chemotherapy and suffer increased toxicity. Twenty to fifty percent of cancer patients die of cachexia.