Japan's Sanwa Licences Dyslipidemia Compound From US Biotech

Japanese pharmaceuticals producer Sanwa Kagaku Kenkyusho has licenced a new compound for dyslipidemia from US firm Quark Biotech. The molecule, known as known as BT16, is currently in Phase II trials and has been developed as a suppressant for triglycerides and other lipids, which are a leading contributory factor in cardiovascular disease.

According to the agreement, Sanwa will complete development and hold the rights to manufacture and market the drug if further trials prove successful. The Japanese company will be entitled to an up-front fee, development milestone payments and royalties on any sales of the prospective drug.

The new arrangement is positive for Sanwa, and follows earlier moves to expand its biotechnology research pipeline. The Japanese biotech sector has been lagging its Western counterparts, and as existing biotech start-ups are likely to remain unprofitable in the short term, the need for collaboration with foreign companies is immediate. The sector is currently worth an estimated JPY1.6trn (US$15.29bn) per year, with about 400 new companies founded since 2000. Last year, the country's government announced a new JPY500bn (US$4.78bn) funding stream for biotech research in order to close the gap with Western competitors.