QuatRx Pharmaceuticals Co. seized an opportunity to build its portfolio by in-licensing two lipid-focused platforms from ILEX Oncology Inc.

In addition to an undisclosed up-front sum, Ann Arbor, Mich.-based QuatRx is scheduled to make milestone payments to ILEX as the programs advance. Focused in the endocrine, metabolic and cardiovascular disease area, privately held QuatRx found a development match that suits its roots.

The lead compound from the first licensed series is QRX-401, which has demonstrated an ability to lower LDL cholesterol and lipoprotein (a) in primate models and is expected to enter clinical trials within a year.

"The dual-action, lipid-lowering mechanism is unique, and it enters a market that is absolutely huge - $20 billion now and moving to probably $30 billion by the time they would be available," QuatRx President and CEO Robert Zerbe told BioWorld Today. "There are little, if any, alternative products that have this profile."

The orally active compound's twin mechanism affects two independent risk factors of cardiovascular disease, and Zerbe noted that the relatively common occurrence of elevated lipoprotein (a) might explain cardiovascular disease in patients that lack high cholesterol.

Among QuatRx's team are members of a group that helped develop Lipitor (atorvastatin, from Pfizer Inc., of New York). Including Zerbe, who was the senior vice president of clinical research at Warner-Lambert Co., QuatRx's four founders all worked on the blockbuster's development.

"All of that expertise, we think, can be applied very effectively to bring these products forward," Zerbe said. "It's a dream team for this compound, and I think we really understand the market very well and the aspects of the profile that we can capitalize on."

A bit earlier in terms of research development, the second series of licensed compounds is designed to elevate low levels of HDL. QuatRx plans to select a lead orally active compound from that platform within a year.

Founded in December 2000, QuatRx has advanced another program into clinical development. Zerbe said the company works to in-license compounds, further their development and explore late-stage strategies when the timing is appropriate.

The lead product in its pipeline is QRX-101, a vitamin D analogue that entered a Phase II study in January. The trial was designed to study the topical formulation in patients with mild to moderate psoriasis, the initial indication for which the drug will be developed. QuatRx said it expects to complete the 120-patient study before the end of the year. The seven-person company contracts out such development work, as it operates as a virtual organization.

"We are continually looking for new opportunities that fit within this profile and have some good leads," Zerbe said. "It is our intention, before the end of the year, to have another endocrine metabolic product at a comparable stage."

The founding venture capital partners of QuatRx, which has raised $8.4 million to date, include Seattle-based Frazier Healthcare Ventures and Wayne, Pa.-based TL Ventures.

San Antonio-based ILEX acquired the technology two years ago through its acquisition of Symphar SA.

"We're primarily an oncology company, and if you look at QuatRx's qualifications, they have much more experience in the area of lipids," Barry Cohen, director of public relations for ILEX, told BioWorld Today. "It made sense to license the product to a company like that."

ILEX bought Geneva, Switzerland-based Symphar for $30 million in equal amounts of cash and stock. The purchase brought on board Apomine, an oral bisphosphonate ester the companies had jointly developed since 1998. It had been in a Phase II trial for prostate cancer, but Cohen said ILEX was looking to partner it out as its development had veered toward osteoporosis, for which it is in Phase II as well. (See BioWorld Today, Feb. 15, 2001.)

He said ILEX would book the up-front payment as revenue once the technology transfer concludes, expected in the third quarter. The company markets Campath (alemtuzumab) for B-cell chronic lymphocytic leukemia, and in January began a Phase II trial in multiple sclerosis. ILEX gained non-oncology rights to the product two months ago. (See BioWorld Today, March 5, 2003.)

Other development efforts going forward include a Phase III trial of eflornithine for superficial bladder cancer, and ILEX plans to report Phase II results of clofarabine in hematologic malignancies in solid tumors at the American Society of Clinical Oncology meeting scheduled to begin next week in Chicago. The company said it would begin Phase II trials of ILEX-651 in solid tumors in the third or fourth quarter, and Phase I studies of NM-3 continue in solid tumors as well.

ILEX's stock (NASDAQ:ILXO) dropped 13 cents Wednesday to close at $15.34.