AstraZeneca has agreed with Arthron Pty Ltd, subsidiary of Prima Biomed Limited, to extend its research program of Arthron’s Fc receptor technology until 30 June 2006 and to enable AstraZeneca to conduct additional studies at their UK facilities.

AstraZeneca entered into a research and option agreement with Arthron in October 2004 in respect of Arthron’s Fc receptor technology. The agreement established a research program that was conducted at the Austin Research Institute (ARI) which commenced in November 2004 and was to conclude with a final research report being made available to AstraZeneca, initially scheduled for April 2005, according to a Prima Biomed Limited release.

Arthron and AstraZeneca have agreed to extend the agreement beyond the initial completion date of April 2005 and to incorporate additional work, to be undertaken by AstraZeneca, in a model of rheumatoid arthritis. These studies will further the understanding of the role of Arthron’s Fc receptor in this disease.

“From Prima’s point of view, the decision by AstraZeneca to now conduct further studies inhouse, offsets the delays that we are incurring in regard to progressing the commercial side of this relationship. We are very enthused by the studies to be undertaken and the decision by AstraZeneca to proceed with these studies strengthens the level of interest in the Fc receptor as a potential therapeutic target and should provide us with more valuable information on the role of this target in rheumatoid arthritis,” stated Marcus Clark, CEO.

Under the original terms of the agreement AstraZeneca funded a 6 month validation study and upon successful completion of the study, has the right to acquire a non-exclusive licence to the Fc Receptor technology for research, clinical development and commercialisation of drugs that inhibit the activation of this receptor.