Santhera buys Juvantia to get rights to Parkinson's drug fipamezole

Swiss biotechnology firm Santhera Pharmaceuticals has entered into an agreement to gain rights to JP-1730/fipamezole from Finland-based Oy Juvantia Pharma, exercising its option to acquire the latter, through the issue of previously reserved shares from its authorized capital to Juvantia investors subject to certain conditions. Further financial details were not revealed. JP-1730/fipamezole, a first-in-class compound, recently completed Phase II development for the treatment of dyskinesia in Parkinson's disease.

Klaus Schollmeier, chief executive of Santhera, said: "The positive FJORD Phase IIb results confirmed the efficacy of JP-1730/fipamezole in reducing levodopa-induced dyskinesia in patients suffering from Parkinson's disease. In order to exploit the full potential of the drug for Santhera, including potential out-licensing rights, we now have full access to all rights to the product."

Upon the exercise of the option, Santhera Pharmaceuticals Holding AG immediately became the owner of Juvantia. In consideration and subject to certain conditions, Santhera will later issue up to 105,973 previously reserved shares from its authorized capital to Juvantia investors. The new shares will be listed on SIX Swiss Exchange.

In July 2006, Santhera and Juvantia signed a collaboration agreement to advance the development of Juvantia's product. Under the deal, the Swiss firm was responsible for conducting and funding further development work. At the same time, a separate option agreement between Santhera and the Juvantia investors effectively granted Santhera the right to acquire Juvantia, thereby securing all rights to the program.