Intec Pharma , developer of the Accordion Pill gastric retention technology, announced today that it has entered into a collaboration agreement with Impax Laboratories Inc. (Pink Sheets: IPXL.PK) a US specialty pharmaceutical company in order to develop a drug using Intec Pharma’s Accordion Pill technology.
Impax specializes in the development and marketing of controlled-release and specialty generics in addition to the development of branded products. The company markets a range of 69 generic products to markets in the US and other countries and it had sales of $112 million in 2005. Impax has a market cap of $380 million.
Intec Pharma CEO Efi Cohen-Arazi said, “Impax has a similar approach to that of Teva; they are a generic company but are also interested in developing specialty products. Their CEO Barry R. Edwards was formerly senior VP with Teva Pharmaceuticals USA.”
Intec Pharma recently announced a change in its business strategy, under which it would move to independent development of products up to the advanced clinical trials stage, after it despaired of the possibility of developing products at the pace it wanted together with leading drug companies. The company has an agreement with a US company for the joint development of a drug for Parkinson’s, although little progress has been made on this drug to date.
”We don’t intend to completely abandon joint cooperation schemes, but rather, we will invest the bulk of our resources in our own independent development activities, in order to take control of our future once more,” says Cohen-Arazi. “Impax could also halt or delay the project.” He is nevertheless optimistic. “In a company like Impax, we can talk directly to the CEO, rather than someone further down the managerial ladder. There is less of chance of a decision concerning a marginal issue getting bogged down for weeks, thereby delaying the project. Moreover, a commitment by the CEO reduces the risk that the project could be stalled.”
Cohen-Arazi explains that Intec Pharma will carry out up to three cooperation projects, to make certain that it focuses the bulk of its efforts on its own products. It does not include the Parkinson’s drug in its ongoing projects, which therefore leaves room for more cooperation projects in the immediate future. It is currently negotiating with Impax over the joint development of an additional product.
On Sunday, “Globes” reported that Cohen-Arazi was stepping from his post as Intec Pharma CEO, but would continue to serve on the company board and support business development. He will be replaced by the company’s founder and current chairman Zvi Joseph.
Published by Globes [online], Israel business news - www.globes.co.il - on June 28, 2006
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