Tercica, Genentech To Create Combo Therapy

Tercica, Inc. has entered an agreement with Genentech for the development, manufacture and commercialization of two products containing Genentech’s recombinant human growth hormone Nutropin AQ and Tercica’s recombinant insulin-like growth factor-1 Increlex for the treatment of short stature, adult growth hormone deficiency (AGHD), and potentially other metabolic disorders. Nutropin AQ and Increlex were originally designed and formulated so that the therapies could be combined and given as a single, daily injection.

Pending FDA guidance and IND acceptance, Tercica plans to initiate Phase II development in 2008 of one combination product for patients with low IGF-1 levels and short stature not associated with growth hormone deficiency; and a second combination product for patients with AGHD.

Under the terms of the collaboration, Tercica may be eligible to receive a total of $53 million in equity payments, opt-in payments, R&D cost reimbursement, and milestone payments. In connection with the transaction, Genentech will purchase $4 million in Tercica’s common stock. Tercica will fund and lead initial development efforts for both combination products. Genentech has certain rights to opt-in to the development programs for both products.