Procter & Gamble, ARYx Therapeutics form alliance for gastrointestinal treatment

By Elaine Rigoli

Tampa, Fla., July 11 - Procter & Gamble Pharmaceuticals, Inc. (P&G), a division of The Procter & Gamble Co., and ARYx Therapeutics announced a strategic alliance under which P&G will develop and commercialize ARYx's ATI-7505 for the treatment of gastrointestinal disorders such as gastroesophageal reflux disease (GERD) and gastroparesis (delayed emptying of the stomach).

Under the agreement, ARYx will grant P&G rights to the worldwide development and commercialization of ATI-7505 in exchange for a $25 million upfront fee, milestone payments and royalties on product sales.

In addition, ARYx has an option to co-develop and co-promote ATI-7505. In total, payments could reach $435 million over the life of the project, including $250 million that could be earned prior to commercialization.

These payments are contingent upon the successful completion of specified development, regulatory and commercialization goals, according to a news release.

ARYx will receive royalties, with the rate escalating upon the achievement of varying sales targets. No other financial terms of the agreement were disclosed.

GERD affects about 4% to 7% of the global population, or about 250 million to 450 million people worldwide. It can manifest itself as symptoms such as heartburn and regurgitation. More than 50% of all diabetics suffer from gastroparesis, or more than 85 million people worldwide. Gastroparesis can lead to severe symptoms such as pain, nausea and vomiting, and even malnutrition.

ARYx Therapeutics, based in Fremont, Calif., is a privately held pharmaceutical research and development company focused on addressing safety concerns.

Procter & Gamble is a global products and health care company with headquarters in Cincinnati.

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