Medicago Inc., a biopharmaceutical company focused on developing highly effective and competitive vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs), has established a strategic alliance with Mitsubishi Tanabe Pharma Corporation (MTPC) through the execution of a master research collaboration agreement on March 6.

This collaboration was highlighted by Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway for Canada, during Canadian Prime Minister Stephen Harper's visit to Japan on March 26.

In addition to this agreement, Medicago and MTPC are pleased to now disclose that MTPC was the lead investor for Medicago's C$ 25 million private placement offering in September 2011. MTPC, previously identified as a Top 50 global pharmaceutical company, made a private equity investment of C$ 10 million in the financing, alongside other healthcare-focused investors.

The objectives of the March 2012 strategic alliance with MTPC are to develop and commercialize at least three new vaccines. MTPC will provide funding for all research and development costs. In exchange for granting licensing rights, Medicago is entitled to receive upfront and milestone payments as well as royalties for each product to be developed under this master agreement. Under this first agreement to develop a Rotavirus Like Particle (RLP) vaccine target, MTPC will have the option to license the RLP vaccine target and assume global development, regulatory and commercialization responsibilities, while Medicago is eligible to receive up to a total of C$ 33 million in upfront and milestone payments as well as royalties on future sales of the RLP product. Medicago will receive an upfront payment of C$ 3 million to begin the initial research on rotavirus. Additional targets under this master agreement are to be selected by Medicago and MTPC at a later date.

“The investment by Mitsubishi Tanabe Pharma followed by the successful execution of our strategic alliance marks the initiation of what we expect to be a long-standing and valuable partnership,” said Andy Sheldon, president and CEO of Medicago. “We have started our work on the rotavirus VLP vaccine candidate, and look forward to announcing additional products under our collaboration in the future.”

Medicago is committed to providing highly effective and competitive vaccines and therapeutic proteins based on its proprietary VLP and manufacturing technologies.