BioMS Medical strikes major deal with Eli Lilly

Edmonton-based BioMS Medical Corp has struck a major licensing and development agreement with Eli Lilly and Co, Indianapolis IN to develop its multiple sclerosis compound. The deal — one of the largest in Canadian history for a single compound — calls for an $87-million upfront payment, development and sales milestone payments of up to $410 million and escalating royalties. In return, the publicly traded Univ of Alberta spin-off grants Eli Lilly exclusive worldwide rights to MBP8298. The synthetic peptide compound is now in two Phase III and one Phase II clinical trials in North America and Europe. The two firms will share certain development costs, with Eli Lilly assuming responsibility for future R&D, manufacturing and marketing activities. BioMS was founded nine years ago by Kevin and Cliff Giese who serve as CEO and board chairman respectively. Cliff Giese is founder of the Mr Lube oil change chain. The company is built on an exclusive worldwide license to proprietary technology developed at the MS Patient Care and Research Clinic at the Univ of Alberta. BioMS has subsequently licensed additional technology from U of A. They include a compound that will be used to treat the side effects of chemotherapy, a technology for improving the effectiveness of anti-viral and chemotherapy drugs, and a gene imaging technology for gene therapy treatment....