With a multi-million agreement within three infectious disease areas with American Genentech, Copenhagen –based Symphogen has reached yet another milestone not only for the company itself, but also for Danish biotech as a whole, writes the Danish daily Børsen.

The agreement ensures Symphogen financing of operations until the end of 2009. This means that the company has received almost EUR 20 million in prepayment out of the approximately EUR 220 million which is the total value of the deal.

It is very difficult for Danish biotech companies to find capital in the venture market at the moment and the stock exchange seems so unapproachable that only the most optimistic persons believe that it will be better during 2008. Consequently, the biotech companies either have to cut down expenses or try to get the money through partnerships with the hungry pharma companies being busy finding replacements for expired patents.

Symphogen chose the way of partnership and sold the employment of their technology platform Symplex so that US based Genentech – one of the first global biotech companies – can develop antibody based drugs for three infectious diseases. When the drugs reach the marketing phase Symphogen will get more than EUR 200 mio. without contributing with money themselves. The Americans will pay the lock in terms of research and development within the three diseases.

Apart from the EUR 220 million. Symphogen may look forward to market competitive royalties, if the drug reaches the market.