Novartis selects UK firm for bone disease research

Novartis, the Swiss pharmaceutical company, has announced it has signed a deal with ProStrakan, a Scottish antibody research company, to research and develop treatments for bone diseases.

ProStrakan, based in Galashiels, will receive payments over two years totalling $5.75 million (three million pounds). Furthermore, the company could receive $140 million upon commercialisation of any therapy that arises from the partnership.

Novartis, on the other hand, will be responsible for clinical and regulatory costs, as well as those for manufacture and clinical development purposes.

ProStrakan will retain the rights to the research approaches under the deal.

Dr Wilson Totten, chief executive officer of ProStrakan, remarked: “We are delighted to be working with Novart is and are looking forward to seeing this project move forward quickly.”

“This partnership is a further example of delivery against our stated st rategy of focussing on near- term commercial growth in parallel with deriving cash cont ribut ion and value from our earlier stage pipeline,” he added.

ProStrakan employs approximately 280 people and listed on the stock exchange in June 2005.

It claims to be one of the UK’s fastest-growing pharmaceutical companies.

ProStrakan also announced today the outright purchase of the worldwide rights to Tostran and Rectogesic from US-based Cellegy Pharmaceuticals for $9 million.