DOW JONES NEWSWIRES
Athersys Inc. (ATHX) reached a development deal with Pfizer Inc.
(PFE) to develop and commercialize its stem-cell treatment for
inflammatory bowel diseases, under which it will receive $6 million
upfront payment and a potential $105 million in milestone
payments.
The biopharmaceutical company, like many other drug-development
companies, is unprofitable. It has trials of its MultiStem
stem-cell products in clinical test for a number of conditions,
including damage from myocardial infarction, bone marrow
transplants and other cancer-treatment support.
Pfizer and other major pharmaceutical companies are aiming to
beef up their pipelines that are under pressure from generic drug
makers as blockbusters come off patents. To do so, they are inking
deals with companies that already have drugs under development.
Under Monday's agreement, Athersys will receive research and
support funding in the initial phase of the collaborations. Pfizer
will have responsibility for development, regulatory issues and
commercialization.
Athersys and Pfizer shares closed Friday at $1 and $18.30,
respectively and didn't trade premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com