MethylGene further extends collaboration with Otsuka Pharma for ocular diseases

Japanese drugmaker Otsuka Pharmaceutical has further extended its funded research collaboration with Canadian firm MethylGene for the development of novel, small-molecule kinase inhibitors for the local delivery and treatment of ocular diseases, excluding cancer, to the end of June 2011.

In April, MethylGene announced that the collaboration, originally formed in March 2008, was extended through September 2010. This new extension will provide an additional $1.27 million to MethylGene in research funding, which is in addition to the $705,000 in funding previously announced by the company on April 23.

Under this research collaboration, MethylGene is entitled to receive up to approximately $50.5 million in milestone payments, as well as royalties on net sales of any resulting product. The first milestone payment of $1.5 million would be received on the commencement of the first GLP toxicity study by Otsuka.