BioWorld International Correspondent

LONDON - Ark Therapeutics is to be granted a European patent on the use of angiotensin-converting enzyme (ACE) inhibitors in the prevention and treatment of stroke, which it said gives it the right to demand royalties on a number of marketed products.

The validity of Ark's claims was acknowledged in April 2005 when Boehringer Ingelheim GmbH signed a license agreement around that intellectual property. The granting of the patent triggers a milestone payment from the Ingelheim, Germany-based company, and Ark will be entitled to sales royalties also.

"In terms of personal satisfaction, getting this patent may not be as big as getting approval for one of our own products, but in terms of the financial significance, it is similar," Martyn Williams Ark's CFO, told BioWorld International.

The news pushed the share price up by £.17 to £1.52, the highest since London-based Ark floated in March 2004.

Ark has applied for the same patent in the U.S. and is expecting to hear the outcome before the end of the year.

Analysts at Credit Suisse said in a note that the European patent was a step toward achieving further Boehringer Ingelheim-type intellectual property deals. "The successful European prosecution makes a positive readout from the U.S. Patent Office more likely, in our view."

The European patent covers 23 molecules belonging to the therapeutic classes of ACE inhibitors and angiotensin II receptor blockers. Ark said many of these are marketed products. The patent does not cover their use in treating hypertension, but it does cover the treatment of myocardial infarction and congestive heart failure, as well as stroke.

Boehringer Ingelheim's angiotensin II anatagonist Telmisartan currently is marketed for treating hypertension, and the company is conducting trials to register the drug in stroke.

Credit Suisse's note said that although it is not clear what percentage of sales of any of the drugs would be covered by Ark's patent, it involves significant value. "Following today's news we have include $1 billion of sales infringing Ark's intellectual property, with a 2 percent royalty from 20009 onward."

Although Ark and Boehringer Ingelheim have not disclosed any financial details of their agreement Credit Suisse estimates it is worth €10 million to €20 million (US$13.2 million to US$26.4 million) in milestones plus a low single-digit royalty.

The intellectual property in question encompasses the discovery of the fundamental role the renin angiotensin system plays in the ability of mitochondria to generate energy. Ark has used this understanding to develop its own drug, Vitor, for treating cancer cachexia.

To date, Ark has not discussed its rights with any other companies, but Williams said it will now begin to make approaches.