Isle biotech company cuts deal with BASF

The giant chemical firm will manufacture a product for Cardax and may also use it

Honolulu-based biotechnology company Cardax Pharmaceuticals Inc. said yesterday it has entered into a joint development and supply agreement for its key product with BASF AG, the world's largest chemical producer.

The agreement calls for BASF, based in Ludwigshafen, Germany, to exclusively manufacture a specialized form of astaxanthin, a key intermediate component used to make the Cardax's proprietary pharmaceutical compound Xancor for cardiovascular inflammatory disease.

Also, as part of the deal, Cardax has granted BASF an option to a royalty-bearing license for nutraceutical use of the specialized form of astaxanthin.

All pharmaceutical applications of Xancor remain the property of Cardax.

"BASF is the ideal partner for us as we move into clinical development of our novel lead compound," said David G. Watumull, president and CEO of Cardax Pharmaceuticals. "Securing a large scale source of ... manufacturing for pre-clinical, clinical, and eventually commercial supply of this key Xancor intermediate is a major milestone for the company. Also, BASF's interest in the nutraceutical use of our astaxanthin technology brings us a possible source of revenue unrelated to our pharmaceutical programs."

BASF will produce Xancor for pre-clinical, clinical and eventual commercial use.

Watumull says clinical trials are still on track to begin by the middle of 2008, with two phases completed by 2009.

He declined to disclose financial projections, but said the potential is immense, given that cardiovascular drugs in the U.S. represent a market exceeding $20 billion.

"If the drug is successful in its clinical trials, the market for Xancor should be substantial," said Watumull.

Cardax, a May spinoff from Hawaii Biotech Inc., currently has a staff of about 15. Watumull said following this joint development agreement, Cardax Pharmaceuticals will be looking to hire about five additional scientists over the next year.

The company plans to develop Xancor first for cardiovascular inflammation, dubbed by Cardax's chief medical officer and executive vice president Fredric J. Pashkow as the "third great wave of opportunity" in cardiovascular disease.

"The first wave, the statins, lower LDL cholesterol," said Pashkow. "The second wave, the anti-platelet therapies such as aspirin and Plavix, help thin the blood. But, many cardiovascular patients remain at risk because of cardiovascular inflammation. Our novel, proprietary drug Xancor is specifically designed to target the source of this major unmet medical need."

Xancor is believed to metabolize into astaxanthin in the body -- a substance used for years as a fish food that turns farm-grown salmon pink as well as a dietary supplement for humans. It is known as one of the most potent antioxidants found in nature.