Burnaby biotech Tekmira Pharmaceuticals Corp. (TSX:TKM) has settled a legal battle with an American collaborator and a B.C. splinter company formed by former Tekmira employees.
In a settlement agreement reached with Alnylam Pharmaceuticals Inc. (Nasdaq:ALNY), Tekmira will receive $65 million within 10 days and is eligible to receive $10 million in near-term milestone payments, according to a company press release.
Previous agreements between the two companies are being cancelled, and under a new license agreement, Alnylam agrees to transfer all agreed-upon patents and patent applications related to lipid nanoparticle technology used in the delivery of RNA interference (RNAi) drugs.
RNAi therapy is also known as gene silencing, in which specific genes in a cell that causes diseases are turned off.
Tekmira’s delivery technology has been shown in clinical trials to be effective in reducing bad cholesterol, inhibiting tumour growth, treating hepatitis and combating the Ebola virus.
Tekmira spent $200 million developing a delivery system – called SNALP – that transports RNAi drugs specific areas of the body.
In March 2011, Tekmira launched a lawsuit against Alnylam, alleging misappropriation of its proprietary technology, and in November, 2011, followed up with a civil suit in BC Supreme Court against AlCana Technologies Inc., a Vancouver splinter group formed by former Tekmira employees, who had been collaborating with Alnylam.
Tekmira has also settled its legal claims against AlCana Technologies, Inc. Tekmira plans to enter into a cross-licence agreement with AlCana, which will include milestone and royalty payments, and AlCana has agreed not to compete in the RNAi field for five years.
Tekmira’s legal troubles took a toll on the company’s stock, with share prices dropping to a 52-week low of $1.60 on November 1, 2011. The company’s shares have since steadily regained their value, with shares trading at $5.61 at close of markets Tuesday.
