Dragon sells Polymun agreement to AS Biotech for $1 million

By Lisa Kerner

Erie, Pa., Feb. 2 - Dragon Pharmaceutical Inc. said it has sold its development and manufacturing agreement with Polymun Scientific Immunbiologische Forschung GmbH to AS Biotech AG, a Swiss company, for $1 million.

Dragon initially entered into the agreement with Polymun to develop a new cell line of Erythropoietin (EPO) for the European market, according to a company news release.

EPO is a hormone produced by the kidneys that stimulates red blood cell production.

Regulatory delays and stringent clinical requirements by the European Medicines Agency increased the time and cost of commercializing EPO. Dragon said it would cost more than $20 million and take an additional three to four years to bring EPO to the European market.

As a result, Dragon's board of directors elected to sell the Polymun agreement, including the remaining milestone payment, minimum purchase commitment and other obligations to AS Biotech.

Prior to the sale, Dragon paid $235,000 to Polymun for two development milestone payments and incurred nominal travel and other expenses for the project.

"The company can now focus on developing its other growth areas especially the chemical business which, through our world-class facilities, could be very competitive and successful in both the Chinese and international markets," Yanlin Han, Dragon chairman and chief executive officer, said in the release.

Dragon is an international pharmaceutical company based in Vancouver, B.C.

Polymun is a biopharmaceutical company located in Vienna, Austria.

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