PTC, Genzyme ink $100 million development deal

PLAINFIELD, N.J. PTC Therapeutics and Genzyme have agreed on a partnership deal that will help PTC develop its lead drug, PTC 124 for treatments like rare forms of cystic fibrosis and Duchenne muscular dystrophy, according to published reports.

Genzyme will pay PTC $100 million upfront and, in exchange, the company will get exclusive rights for the drug, which is currently in phase 2 clinical trials, outside the United Stated and Canada.

Also, under the terms of the deal, PTC will be responsible for finishing up four studies involving the drug. Afterward, the two companies will share research and development costs. PTC will also be eligible for additional fees up to $337 million from Genzyme based on regulatory progress and level of sales achieved by the PTC-124.

This announcement comes just one day after PTC received an award for $25 million for the same drug from the drug discovery branch of the Cystic Fibrosis Foundation.

PTC-124 is designed for patients who have a genetic disorder caused by a nonsense mutation, which interrupt sequences in DNA coding.