Paradigm Genetics Inc and VDDI Pharmaceuticals has signed research and development collaboration for the development of antibiotics for the treatment of gram-positive bacterial infections. Under the terms of the agreement, upon certain conditions, VDDI will support Paradigm's research and development efforts, as well as pay potential royalties.

In addition, Paradigm will have the option to make an unspecified equity investment in VDDI; further specific financial details were not disclosed.

VDDI has acquired rights to a new class of anti-microbial compounds discovered at the University of Alabama at Birmingham (UAB). These compounds specifically target the essential bacterial enzyme nicotinamide adenine dinucleotide synthetase (NADs).

Through the collaboration, Paradigm will initially use its proprietary metabolomics technology platform, MetaVantage, to prioritize lead compounds targeting NADs for further preclinical development. The agreement includes an option for Paradigm to pursue co-development of select compounds for antibiotic and anti-fungal applications with VDDI in human health as well as for any agrochemical applications.

In March, VDDI will be awarded a multi-year contract of $23 million from the Department of Defense for the research and development of antibiotics for the treatment of anthrax. The Contract underwrites the cost of developing a "small molecule treatment," pre-clinical studies, Food & Drug Administration filings, and human trials. The antibiotic that VDDI and Paradigm are developing was originally funded under a $6 million Defense Advanced Research Projects Agency (DARPA) grant to the UAB Center for Biophysical Sciences and Engineering. Due to the critical nature of finding treatment for anthrax, products developed under this program could receive expedited FDA review.