Cytogen Sells Ownership in PSMA Development Joint Venture to Progenics
Terms include upfront cash and milestone payments to Cytogen potentially totaling more than $65 million
Cytogen Corporation announced the sale of its 50% ownership interest in PSMA Development Company LLC (PDC), the company's joint venture with Progenics Pharmaceuticals, Inc. for the development of in vivo cancer immunotherapies based on prostate-specific membrane antigen (PSMA).
Under the terms of the agreement, Cytogen sold its 50% interest in PDC to Progenics for an upfront cash payment of $13.2 million, potential future milestone payments totaling up to $52 million payable upon regulatory approval and commercialization of PDC products, and an undisclosed royalty on future PDC product sales. Cytogen will no longer be responsible for funding PDC. In 2005, Cytogen's share of the loss associated with PDC was $3.18 million.
PSMA is a protein abundantly expressed on the surface of prostate cancer cells, with an increased expression in high-grade cancers, metastatic disease and hormone-refractory prostate cancer. PSMA is also present at high levels on the newly formed blood vessels, or neovasculature, needed for the growth and survival of many solid tumors. In contrast to other prostate-related antigens such as prostate-specific antigen (PSA), prostatic acid phosphatase (PAP) and prostate secretory protein, PSMA is a membrane glycoprotein that is not secreted. These unique attributes make PSMA an excellent target for monoclonal antibody diagnostic and therapeutic options in prostate and potentially other cancers.
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