MethylGene turns focus to eye diseases Montreal's MethylGene Inc., best known for its anti-cancer drug research, is moving into a new field by forming a $55-million (U.S.) partnership with a large Japanese health-care group to develop new products to treat severe eye diseases.

CEO Don Corcoran announced a research and licence pact yesterday with Otsuka Pharmaceutical Co. Ltd., with 31,000 employees in 18 countries and more than $7 billion in annual revenue, to develop and market specific drugs to block the formation of excess blood vessels in macular degeneration and other eye problems that threaten loss of sight.

The chemical basis for the new drugs stems from MethylGene's cancer products designed to prevent the formation of blood vessels that nourish tumours. Its flagship product to treat blood cancers, solid tumours and other diseases, MGCD0103, is in Phase 2 clinical trials and is partnered with Celgene-Pharmion of the U.S. and Japan's Taiho Pharmaceutical.

A product to treat neurogenerative disease is partnered with EnVivo Pharmaceuticals and could be in Phase 1 trials later this year.

MethylGene's drugs going into clinical trials were all researched and designed inhouse.

Canaccord Adams's Joseph Pantginis said the deal underlines the strength of MethylGene's chemistry in developing target-specific drug candidates. "We expect 2008 will be a very exciting year for the company."

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Montreal Gazette