Mass High Tech - July 30, 2009

MSM Protein pulls in pair of partners
Mass High Tech

Medford-based biotech company MSM Protein Technologies Inc. reports a pair of deals to help European drug makers develop new therapies using its proprietary technology that tests the effectiveness of antibodies against certain targets. Both deals focus on treatments based on G-protein coupled receptors.

In the first deal, Merck Serono, a division of Germany’s Merck KGaA, will use MSM’s technology to create antibody-based products targeted to GPCRs, as well as other possible targets in the cell membrane. MSM will get an unspecified upfront payment and is eligible to receive more payments based on reaching development and commercial milestones, as well as royalties on sales of potential products resulting from the collaboration.

Merck Serono, based in Switzerland, is the Merck KGaA division called EMD Serono in North America. In March, Merck Serono announced it was starting a corporate venture arm for biotech startups called Merck Serono Ventures, with an initial capitalization of $54.7 million.

In the second deal, MSM and Switzerland’s Debiopharm Group have entered into an exclusive agreement to develop and market Debio 0929, an antibody targeting a specific GPCR, to be developed into a new cancer therapeutic drug.

Davis Farmer, MSM’s chairman, said that the deal is a first for MSM, as it marks the company’s first jointly owned program with a global partner.

No further financial details of either deal were released.