Photocure and Salix terminate Lumacan partnership

Norwegian photodynamic technologies specialist Photocure (PHO: OL) has agreed to terminate the global licensing agreement with USA-based Salix Pharmaceuticals (Nasdaq: SLXP) for Lumacan (hexamiolevulinate), which is in early stage development to increase the detection rate of colorectal cancer through photodynamic diagnosis.

Following the proposed merger agreement between Salix and Italy-based Cosmo Pharmaceuticals (SIX: COPN), under which Salix will combine with Cosmo Technologies, a subsidiary of Cosmo, Photocure has agreed the termination under the following terms: Photocure will receive a payment of $5 million from Salix and will regain the global rights and all intellectual property to Lumacan.Photocure entered into a development and commercialization agreement with Salix in 2010, granting Salix an exclusive global license for Lumacan.

Photocure president and chief executive Kjetil Hestdal said: "We believe Lumacan has the potential to deliver clinically meaningful improvement in the battle against colorectal cancer. We are now evaluating all options to secure the further development and optimal value for Lumacan."