Southern Research Institute finds a new source of revenue for ongoing drug development through pharmaceutical companiesThis partnership may improve lives

Sunday, May 08, 2005

CHARLES R. McCAULEY

News staff writer

Southern Research Institute's drug discovery division is going commercial.

The division, relying mostly on federal research dollars, has discovered and gotten more cancer drugs to market than any U.S. pharmaceutical or biotechnology company, according to the not-for-profit institute. About 18 months ago, Southern Research began seeking commercial arrangements with drug companies as a way to expand the division's work.

The push already is paying off: New Jersey-based Schering-Plough Corp. has agreed to work with the division on developing compounds that have potential to treat infectious diseases, a $1 million initiative.

Schering-Plough is providing financial support for the research program. Southern Research will share ownership of the technology.

Southern Research's expertise and track record in drug discovery attracted Schering's attention, spokesman Bob Consalvo said. "They have been very successful in their drug discovery and development efforts. They have kind of a unique approach to that. It was of interest to us," he said.

Specifically, Southern Research has expertise in doing drug discovery in some of the categories - including infectious diseases such as hepatitis and HIV - Schering has research and marketing efforts and some of its businesses are focusing on, Consalvo said.

Over its 40-plus years in drug discovery, the division has worked on specific, tightly defined research projects with pharmaceutical and biotechnology companies but not on commercial efforts.

"They might outsource some contract work, but they didn't let you in on their secrets or what they were working on, or share the intellectual property," said David R. Harris, who joined the institute three years ago as its first business development director.

Commercial projects:

That has changed in the past couple of years. Pharmaceutical companies now are much more willing to collaborate on drug discovery and are outsourcing more discovery work to organizations like Southern Research, which has shown that it's capable of creating commercial products, Harris said. Its work has resulted in six drugs that have won approval from the Federal Drug Administration, and there are six more in trials.

Today, drug makers are now also more willing to share ownership of intellectual property, said Jack Secrist, a vice president who heads the division.

While collaborative efforts are an industry trend, Consalvo said, Schering has been doing joint agreements for quite some time. Joint researching "is increasing in the pharmaceutical industry probably because the technology has become so advanced," he said, "and the challenges in discovering drugs to these diseases we are targeting today are so great that it takes many different kinds of expertise to do that amount of research work."

So partnering with companies or organizations that have that expertise makes a lot of sense, he said. "It's a way for both parties to bring what their general expertise is to the program."

Noting the new trend, Southern Research began pursuing the idea of teaming with drug companies as another funding source, Harris said. The institute wants to continue using federal funding to do discovery work and to connect with companies that are interested in partnerships, he said.

Southern Research's drug discovery division believes its research model on cancer drugs is "one that should help us come up with additional new drugs," said Secrist. "We think that we can help other people succeed as well, and that's what we're trying to do on a limited basis."

Generating commercial research agreements with pharmaceutical firms will benefit the Birmingham community, Secrist said. The deals will allow Southern Research to hire more researchers, broaden the list of ways to succeed in finding new drugs and generate a revenue source from the intellectual property, or technology, he said.

Many companies are interested in partnerships but they want Southern Research to provide the support, Secrist said, adding that the institute doesn't have the resources to do that.

Focus on cancer:

Secrist said Southern Research wants to expand drug discovery to other areas than cancer, but for now will focus on partnerships in anticancer drugs because that's where people know it has expertise. The institute is beginning discussions with several companies that may become its next partners, Secrist said. It may have another deal or two to announce this year, he said.

It did a cancer drug project with Gilead Sciences Inc. in Foster City, Calif., last year. That project resulted in the hiring of two chemists. A two-year deal was signed in January with Ziopharm Inc. in New Haven, Conn.

One plus for Southern Research is its repository of compounds developed over the years that have specific effects, Secrist said.

"One basis upon which such a partnership can initiate is finding some activity in a given direction with one or some of our repository compounds," Secrist said. "And that's what happened with Schering-Plough."

Schering screened the institute's repository and found a series of compounds that interested it, he said. The project is expected to produce 50 to 100 compounds over a year that would go to the biological screening stage or cell culture examinations, Secrist said.

Southern Research chemists, led by principal investigators Cecil Kwong and Hollis Kezar, will make new compounds, and Schering scientists will do the biological screenings to see how they work.

Schering, a worldwide science-based health care company with corporate offices in Kenilworth, N.J., makes and markets prescription, consumer and animal health products derived from its labs and from partnerships with other researchers.

Harris said one key to Southern Research having more cancer drugs than drug makers, biotechs and universities is it has "a full pipeline of services, everything you need here under one roof, in a small company."

Secrist said, "Another reason we have succeeded is we've stayed focused in what we believed were areas where there was a significant likelihood of finding a good drug."

Over the past 10 years, the institute has received about $10 million for its technology.

E-mail: cmccauley@bhamnews.com



Southern Research Institute finds a new source of revenue for ongoing drug development through pharmaceutical companiesThis partnership may improve lives Sunday, May 08, 2005 CHARLES R. McCAULEY News staff writer Southern Research Institute's drug discovery division is going commercial. The division, relying mostly on federal research dollars, has discovered and gotten more cancer drugs to market than any U.S. pharmaceutical or biotechnology company, according to the not-for-profit institute. About 18 months ago, Southern Research began seeking commercial arrangements with drug companies as a way to expand the division's work. The push already is paying off: New Jersey-based Schering-Plough Corp. has agreed to work with the division on developing compounds that have potential to treat infectious diseases, a $1 million initiative. Schering-Plough is providing financial support for the research program. Southern Research will share ownership of the technology. Southern Research's expertise and track record in drug discovery attracted Schering's attention, spokesman Bob Consalvo said. "They have been very successful in their drug discovery and development efforts. They have kind of a unique approach to that. It was of interest to us," he said. Specifically, Southern Research has expertise in doing drug discovery in some of the categories - including infectious diseases such as hepatitis and HIV - Schering has research and marketing efforts and some of its businesses are focusing on, Consalvo said. Over its 40-plus years in drug discovery, the division has worked on specific, tightly defined research projects with pharmaceutical and biotechnology companies but not on commercial efforts. "They might outsource some contract work, but they didn't let you in on their secrets or what they were working on, or share the intellectual property," said David R. Harris, who joined the institute three years ago as its first business development director. Commercial projects: That has changed in the past couple of years. Pharmaceutical companies now are much more willing to collaborate on drug discovery and are outsourcing more discovery work to organizations like Southern Research, which has shown that it's capable of creating commercial products, Harris said. Its work has resulted in six drugs that have won approval from the Federal Drug Administration, and there are six more in trials. Today, drug makers are now also more willing to share ownership of intellectual property, said Jack Secrist, a vice president who heads the division. While collaborative efforts are an industry trend, Consalvo said, Schering has been doing joint agreements for quite some time. Joint researching "is increasing in the pharmaceutical industry probably because the technology has become so advanced," he said, "and the challenges in discovering drugs to these diseases we are targeting today are so great that it takes many different kinds of expertise to do that amount of research work." So partnering with companies or organizations that have that expertise makes a lot of sense, he said. "It's a way for both parties to bring what their general expertise is to the program." Noting the new trend, Southern Research began pursuing the idea of teaming with drug companies as another funding source, Harris said. The institute wants to continue using federal funding to do discovery work and to connect with companies that are interested in partnerships, he said. Southern Research's drug discovery division believes its research model on cancer drugs is "one that should help us come up with additional new drugs," said Secrist. "We think that we can help other people succeed as well, and that's what we're trying to do on a limited basis." Generating commercial research agreements with pharmaceutical firms will benefit the Birmingham community, Secrist said. The deals will allow Southern Research to hire more researchers, broaden the list of ways to succeed in finding new drugs and generate a revenue source from the intellectual property, or technology, he said. Many companies are interested in partnerships but they want Southern Research to provide the support, Secrist said, adding that the institute doesn't have the resources to do that. Focus on cancer: Secrist said Southern Research wants to expand drug discovery to other areas than cancer, but for now will focus on partnerships in anticancer drugs because that's where people know it has expertise. The institute is beginning discussions with several companies that may become its next partners, Secrist said. It may have another deal or two to announce this year, he said. It did a cancer drug project with Gilead Sciences Inc. in Foster City, Calif., last year. That project resulted in the hiring of two chemists. A two-year deal was signed in January with Ziopharm Inc. in New Haven, Conn. One plus for Southern Research is its repository of compounds developed over the years that have specific effects, Secrist said. "One basis upon which such a partnership can initiate is finding some activity in a given direction with one or some of our repository compounds," Secrist said. "And that's what happened with Schering-Plough." Schering screened the institute's repository and found a series of compounds that interested it, he said. The project is expected to produce 50 to 100 compounds over a year that would go to the biological screening stage or cell culture examinations, Secrist said. Southern Research chemists, led by principal investigators Cecil Kwong and Hollis Kezar, will make new compounds, and Schering scientists will do the biological screenings to see how they work. Schering, a worldwide science-based health care company with corporate offices in Kenilworth, N.J., makes and markets prescription, consumer and animal health products derived from its labs and from partnerships with other researchers. Harris said one key to Southern Research having more cancer drugs than drug makers, biotechs and universities is it has "a full pipeline of services, everything you need here under one roof, in a small company." Secrist said, "Another reason we have succeeded is we've stayed focused in what we believed were areas where there was a significant likelihood of finding a good drug." Over the past 10 years, the institute has received about $10 million for its technology. E-mail: cmccauley@bhamnews.com © 2005 The Birmingham News © 2005 al.com All Rights Reserved.