Based: Slough, U.K
Founded: 2003
www.piramed.com

Why It's Fierce: Licensing deals usually start to happen around Phase II, when there's enough efficacy data to realistically evaluate the odds a therapy has for gaining regulatory approval. But PIramed singed a $230 million preclinical collaboration with cancer heavyweight Genentech late last year. The deal includes an unspecified amount of research money, and PIramed retained rights to commercializing therapies outside the U.S.

The pact covers what PIramed believes will become a new class of cancer drugs that target the PI-3 kinase, an enzyme that plays a role in a variety of cancers. The drugs target intracellular proteins that regulate cancer activity, including proliferation, angiogenesis and metastasis. That mechanism may well broaden the application to a large group of cancer patients, which is one reason why Genentech was so interested.

"We believe the alliance with Genentech is one of the largest preclinical collaborations ever signed by a U.K. biotech company and is an important deal for PIramed," said company CEO Michael Moore. By retaining an option to ex-U.S. rights, PIramed also has the opportunity to find another partner on the therapy, which could follow later in the clinical development program.

Next in the pipeline is a preclinical PI-3 program for immune inflammatory disease. "We have the funding to take this program to proof of concept in Phase II for a single indication, and our strategy is to do just that," says Moore. "Depending on the terms, we would be interested in a partner provided we could retain a substantial part of the action and prospects for commercialization, as we've done with the Genentech program."

PIramed's program is based on the work of three U.K. scientists: Michael Waterfield, Peter Parker and Paul Workman. PIramed licensed exclusive worldwide rights to their work from their institutes and Japan's Yamanouchi Pharmaceutical.

One point that sets PIramed apart from its colleagues in the industry is its efficient use of capital. It's gone far and fast on a relatively small sum. JP Morgan Partners and Merlin Biosciences have staked the company to $20 million in venture funds and convertible notes.

What to look for: A second venture round to accelerate the immune-inflammation program is likely in the next six to 12 months, but Moore is keeping his cards close to his chest on the likely amount to be raised. A merger could be a distinct possibility, but Moore isn't ruling out an IPO in the mid-term either.

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