Marina Biotech to acquire late-stage program from Turing Pharmaceuticals

Marina to pursue Phase III studies for use of intranasal ketamine in multiple indications.

The assets to be acquired will include all patents and intellectual property rights, clinical development plans, regulatory documents and existing product inventories. As per the term sheet, Marina will pay to Turing up to $95 million in success- and sales-based milestones plus a mid-single digit royalty on net sales. Further terms of the proposed transaction were not disclosed.

"We are extremely pleased to have this opportunity to bring in a late-stage clinical program with the potential for approval in multiple indications including certain rare disorders," stated J. Michael French, President and CEO at Marina Biotech. "The program has been advanced worldwide with plans for U.S. and international clinical trial sites. The work thus far has predominately been directed at suicidality in post-traumatic stress disorder; a patient population with few, if any, therapeutic options. We believe the early clinical successes of this program combined with broadening acceptance of ketamine as a treatment for neurological and psychiatric diseases, presents a unique opportunity to rapidly move this compound into the US market as early as 2019. In addition, there is some earlier work by academic centers suggesting that intranasal ketamine might be efficacious in patients suffering from certain rare diseases. We look forward to working with the Turing team to conclude this transaction and transfer the assets as quickly as possible in order to maintain the momentum of this program."

"We too are pleased to enter into this relationship with Marina and to have found a company capable of giving this program the priority it deserves," stated Eliseo Salinas, President of Research and Development at Turing Pharmaceuticals, "I have been impressed with the progress our research and development team has made over the past 6 months in advancing intranasal ketamine for the treatment of suicidality. I look forward to working with the Marina team to rapidly transition this program so that we can maintain our momentum and bring this compound to market as quickly as possible."

Marina's purchase of Turing's Phase III intranasal ketamine program is expected to close by 1 July 2016, pending the completion of customary due diligence considerations, the negotiation, execution and delivery of a definitive asset purchase agreement, and the satisfaction or waiver of the closing conditions set forth in the asset purchase agreement, including the completion by Marina of a financing transaction yielding proceeds sufficient to initiate and support the Phase III efforts.

Mr French added: "Regarding the sale of our nucleic acid therapeutics assets, which we previously announced in our press release dated March 15, 2016, we have terminated the on-going efforts to sell these assets to Microlin Bio, Inc. However, we continue to explore opportunities to advance our existing clinical and preclinical programs through either our own efforts or those of a collaboration partner and leverage our nucleic acid drug discovery engine through collaborative partnerships or sale. The Marina Board of Directors and I believe that the opportunity to bring the ketamine compound to market within the next 4 years combined with the ability to leverage our nucleic acid assets, creates the best opportunity to build value for our shareholders."