Unigene Divests Non-Core Asset & Focuses Resources on High Valuation Drug Development & Peptide Delivery

Unigene Laboratories, Inc. recently announced it has divested its non-core asset, Site Directed Bone Growth (SDBG) by assigning seven patent applications to Kieran Murphy, LLC. In addition, Unigene terminated an Exclusive License Agreement and Consulting Agreement with Kieran Murphy, LLC, as well as a License Option Agreement and Research Agreement with Yale University. In exchange for the assignment of the patents, Unigene will receive sales royalties in excess of 7% and will receive 40% of any future licensing revenue and/or 40% of all considerations received upon the subsequent sale of the SDBG patent portfolio by Kieran Murphy, LLC.

Kieran Murphy, LLC is a development-stage company founded by the internationally renowned clinical key opinion leader Dr. Kieran Murphy. Dr. Murphy is the Vice Chair and Chief of Medical Imaging at the University of Toronto in Toronto, Ontario. He recently left Johns Hopkins Hospital, where he was the Director of Interventional Neuroradiology from 1998 to 2008. He has published over 100 peer-reviewed articles and has over 50 patents pending or issued worldwide. He is considered to be one of the most innovative specialists in the use of radiology guidance in the treatment of vascular brain and spinal disorders.

“I recognize the tremendous value in the Site Directed Bone Growth Program and also recognized Unigene’s need to focus on the strength of its oral delivery platform and cleanly exit the collaboration we began several years ago,” said Dr. Murphy. “With the IP necessary to exploit this invention squarely in the hands of my company, we will quickly be able to move SDBG into a proof-of-concept study in a target population investigating the effect of bone compatible cements in combination with a bone anabolic agent on new bone growth in vertebral body adjacent to a vertebra undergoing vertebroplasty. Once the relevance and superiority of this approach is established, our intent is to identify and license potential partners within the medical device space who recognize how important the addition of a biologic is to the surgical outcome.”

“SDBG was the one remaining non-core asset that did not fit Unigene’s high-valuation drug development and oral peptide drug delivery strategy,” added Greg Mayes, Vice President of Corporate Development and General Counsel of Unigene. “We have now found an excellent home for this otherwise valuable asset. We have every confidence that Dr. Murphy will apply the right resources and expertise to quickly demonstrate proof of concept and license out the opportunity to one or more competent commercialization partners. With more than 7% royalties and 40% of any licensing or sales proceeds, Unigene will more than recoup what it has invested in the SDBG program to date and should ultimately secure a satisfactory return on its investment. We wish Dr. Murphy every success with the Program.”

In divesting its SDBG patent portfolio, Unigene also terminated its License Option Agreement and Research Agreement (which expired May 31, 2010) with Yale University. Unigene had previously been working with Yale Professor Agnes Vignery and filed a number of patent applications covering the SDBG Patent Portfolio. Unigene has terminated these agreements and returned a number of patent applications to Yale University.