Synergen

Executive Summary

Reacquires rights to interleukin-1 receptor antagonist (IL-1ra) from Hoffmann-La Roche. Product is in preclinicals for autoimmune and inflammatory diseases, including rheumatoid arthritis. Worldwide rights to IL-1ra revert to Synergen. Other terms of the agreement were not disclosed. The Boulder, Colorado-based biotech firm and Roche entered into a collaborative effort on the product in May 1989. Synergen, which has approximately $50 mil. in cash on hand, said termination of the agreement would not affect the development of IL-1ra or its other projects, even though Roche's payments accounted for 64% of contract R&D revenues in 1989 and 61% during the first quarter of 1990. The company still expects to being human clinicals on IL-1ra "later this year." Roche's decision followed a reprioritization of its pipeline, according to Synergen.