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Vancouver (October 18th, 2004) - In what is considered the largest Canadian pre-clinical biotech agreement ever, a Canadian Genetic Diseases Network (CGDN) associated biotech company has announced a partnership with the global drug giant, Novartis, to fund the development of novel treatment for obesity.
Under the arrangement Xenon Pharmaceuticals Inc., a Vancouver-based drug discovery and development company, will receive up to $200 million dollars Cdn from Novartis Pharma AG to research, develop, and commercialize a novel treatment for obesity.
Obesity affects more than 300 million people worldwide and is a prime cause of diseases such as diabetes, cancer, osteoarthritis and hypertension. In the US alone, more than 44 million Americans are considered obese, an increase of 74% since 1991.
Xenon exemplifies the role that CGDN plays in advancing the commercial and scientific competitiveness of genetic research in Canada. Early in Xenon's development, CGDN provided a strategic grant to further research which led to the discovery of the ABCA1 gene responsible for regulating HDL cholesterol in humans. This discovery provided a solid foundation for Xenon to build its drug discovery platform enough to attract a multimillion-dollar partnership with Novartis.
"Xenon's collaboration with Novartis will allow them to expand on research that has the potential to affect the health of millions of people worldwide,'" said CGDN CEO Dr. Ron Woznow. "CGDN is proud of its role of supporting discovery research at the critical early stage which, as illustrated by Xenon, holds the promise of important new drugs to combat obesity, which has a strong genetic component."
Earlier in the year, another CGDN-associated company, Aspreva Pharmaceuticals Corp., announced its partnership with Hoffmann-La Roche in what was the biotech industry's largest single round of private funding in the world as of March 2004 and among the largest private fundings in biotech history. In the agreement, $75 million Cdn in private equity financing will be made available to Aspreva to fund clinical trials of Hoffmann-La Roche's drug "CellCept" in the treatment of Lupus and other rare autoimmune disorders.
About CGDN
The Canadian Genetic Diseases Network is a not-for-profit corporation, committed to advancing Canada's scientific and commercial competitiveness in genetic research, and the application of genetic discoveries to prevent, diagnose, and treat human disease. To achieve its objectives, CGDN participates in three essential activities: facilitates and funds collaborative research in human genetics across Canada; educates emerging scientists to excel in human genetic disease research; and facilitates partnerships between industry (biotechnology, pharmaceutical, and diagnostic firms) and academia to translate research discoveries into therapies or diagnostic tests.
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