Pharmacyclics, Inc has entered into a global strategic alliance with Servier, the leading French independent pharmaceutical company. The alliance will focus on the research, development, and commercialization of Pharmacyclics' PCI-24781, an orally active, novel, small molecule inhibitor of Pan HDAC enzymes, that is currently in phase-I/II clinical trials in the United States and being developed for the treatment of solid tumours and haematologic malignancies. Pharmacyclics expects that this alliance will enable it to aggressively pursue its goal of developing and commercializing its innovative anti-cancer Pan HDAC inhibitor agents.

"This alliance with Servier allows us to accelerate our productive discovery efforts, to expand our clinical development capabilities and potentially commercialize our unique and differentiated Pan HDAC inhibitor product outside of the United States in rapid fashion," said Robert W Duggan, chairman and chief executive officer of Pharmacyclics. "We are honoured to be partnering with the Servier Company, they are incredibly professional in all aspects of their business dealings. Their success and advancement of human healthcare is respected around the world."

Under the terms of the agreement, Servier acquired the exclusive right to develop and commercialize the Pan HDAC inhibitor product worldwide except for the United States and will pay a royalty to Pharmacyclics on sales outside of the United States. Pharmacyclics will continue to own all rights within the United States. Pharmacyclics will receive from Servier upfront payments totalling $11 million on signing the contract and an additional guaranteed $4 million for research collaboration over a 24 month period, paid in equal increments every 6 months with the initial payment due October 1, 2009. Servier will pay for all development costs outside the United States. In addition Pharmacyclics will receive $24.5 million based on the achievement of certain milestones up to and including commercialization.

"The collaboration will focus on the clinical development of PCI-24781, as well as to support ongoing research and development of novel, increasingly selective HDAC inhibitors and gives us the opportunity to rapidly bring to market innovative, best-in-class treatments for cancer patients," said Dr Maky Zanganeh, vice president of Business Development for Pharmacyclics.

"The combination of Servier's outstanding clinical team with Pharmacyclics' research expertise in novel, small molecule inhibitors of Pan HDAC enzymes, presents a unique opportunity to develop this exciting new class of drugs to its full therapeutic potential," said Dr Joseph J Buggy, vice president of Research for Pharmacyclics.

Servier is the leading, independent pharmaceutical company in France and the third in the world. Pharmacyclics is committed to creating and developing novel pharmaceutical products that treat serious unmet medical needs in oncology and autoimmune diseases. HDAC inhibitors are a class of compounds that inhibit histone deacetylation, a process that regulates gene expression.