[e-drug] PA824, new TB drug (cont)

E-drug: PA824, new TB drug (cont)
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Dear Khalil, (if I may)

Fortunately, and intentionally, the PA 824 deal is very different from
what you understood. Let me provide here the clarifications that will
address your concerns:

First, Chiron has an option to a license for specific countries: US,
Japan, EU and Canada, Australia and New Zealand -- not a "de facto"
monopoly. In fact, our agreement provides that this option needs to be
exercised in a narrow window of time after the TB Alliance offers this
to Chiron.

And should Chiron chose to exercise this option, they have to repay the
Alliance ALL fees and R&D investments, plus royalties.

Importantly, the Alliance retains ALL rights to the rest of the world,
including Brazil and India; and, of course, all the 22 TB endemic
countries. For these, Chiron will receive NO royalties for any products
in these countries.

With respect to the state of development: PA-824 is in what is known as
lead optimization stage - there is no clinical data. Much of the
toxicology, chemical synthesis optimization and all of the clinical
development is still to be done. The deal is consequently modest in
financial terms in accordance with the early stage of development.

The license agreement is in the process of being finalized and signed.
We then look forward to working with scientists and investigators from a
number of countries, including many from the actual countries with a
high burden of TB. And PA 824 will be one of several compounds in the
TB Alliance's portfolio, aiming to have at least one new such drug
registered by 2010.

Feel free to contact me further on matters of such kind: we're happy to
discuss our ways of doing business for new R&D and equitable access to
new TB drugs, at least to the extent we can. Can you please make sure to
address/copy my email address when you send me a question? I may not
always catch every e-drug message and almost missed this one. I can
also be reached at +1 646 361 1649.

Cheers,

Joelle
Joelle Tanguy
Director of Advocacy and Public Affairs
Global Alliance for TB Drug Development
Joelle.tanguy@ttballiance.org
www.tballiance.org
+1 646 361 1649 (mobile)
+1 212 227 7540 x 207 (New York)
+32 2 210 02 20 (Brussels)
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