By Lisa Seachrist

Washington Editor

Synaptic Pharmaceutical Corp. signed a three-year research and licensing agreement with Tokyo-based Kissei Pharmaceutical Co. Ltd. to identify and develop drugs capable of acting through novel cellular receptors.

The two companies aren't releasing the terms of the agreement other than to note it includes a licensing fee, research funding, milestone payments and royalty payments to Paramus, N.J.-based Synaptic for each drug that ultimately reaches the marketplace. However, the deal is the first based on Synaptic's cDNA library normalization technology to identify receptor genes not found in commercial databases.

Under the terms of the agreement, Kissei will have worldwide exclusive rights to use selected receptors resulting from the collaboration in order to develop, manufacture and market drugs that act through those receptors.

"This is [our] first deal of its kind," said Synaptic spokesman Robert Spence. "Our goal is to get a lot more like them. We are now working on identifying other partners who may be interested in this technology."

Synaptic's technology integrates its proprietary molecular biology technology with automated gene sequencing technologies and bioinformatics. Any receptor discoveries will be assayed using Synaptic's Universal Functional Assay in order to identify the receptor's natural ligands and link the receptor to its physiologic functions.

With the natural ligand in hand, Synaptic will develop assays to create drug development systems capable of identifying compounds that act through the receptors of interest.

"Our technology allows us to identify some of the harder-to-find genes," Spence said.

The Kissei deal is a basic research collaboration including an undisclosed number of novel receptors. The deal isn't focused on specific disease areas or organ systems.

"[Kissei] is not starting out looking at specific diseases," Spence said. "G-protein-coupled receptor proteins are found all over the body so, depending on what is discovered, this deal could include any number of indications."

Synaptic's stock (NASDAQ:SNAP) closed Tuesday at $8.875, up $1.125, or 14.5 percent.