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Recombinant Alpha 1-antitrypsin

Arriva Pharmaceuticals

Drug Names(s): rAAT

Description: AAT is a serine protease inhibitor (serpin) which protects tissue from enzymes from inflammatory cells. AAT derived from human plasma is prohibitively expensive, costing up to $100,000 a year. Recombinant AAT is produced by genetically modified organisms following the insertion of the relevant DNA into their genome.

Deal Structure: In March 2000, Baxter and Arriva (at that point, AlphaOne Pharmaceuticals) agreed to co-develop an inhaled, recombinant alpha 1-antitrypsin (rAAT)product. Under the agreement, Baxter received exclusive worldwide marketing and distribution rights for rAAT to treat hereditary emphysema, and an option to develop other pulmonary indications, including asthma, cystic fibrosis andchronic obstructive pulmonary disease.

In May 2002, ZymoGenetics and Arriva signed an agreement that grants Arriva a worldwide license to United States Patent 5,218,091 -- which covers production of rAAT in yeast. As part of the licensing agreement, Arriva will pay to ZymoGenetics an initial license fee along with maintenance fees, milestones and royalty payments. Arriva will be responsible for development and commercialization of rAAT.

In 2005, the license between ZymoGenetics and Arriva was terminated.

Partners: Baxter International Inc.

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