China's Hutchison MediPharma, Chi-Med's R&D subsidiary, has bagged a drug discovery and development agreement with drug heavy Eli Lilly.

Together, the two firms will focused on drug targets in oncology and inflammation at Hutchinson's facilities in Shanghai. China's attractive cost base was a factor in Lilly's decision to partner with the firm.

Although detailed financial terms were not disclosed, Hutchison will receive an upfront payment, annual R&D support fees, along with milestone payments of up to $20m-$29m per candidate at certain time-points and potential royalties on worldwide sales of any commercialised products. Hutchison will also have the option to take control of any candidates that Lilly rejects.

Tripos Discovery Research, a subsidiary of Commonwealth Biotechnologies, has signed a library analysis contract with Elan Pharmaceuticals.

Under the deal, Tripos will perform a computational analysis of Elan's screening collection of small molecule compounds to determine "optimal areas for expansion" and will also provide high throughput quality control analyses of legacy compounds via mass spectrometry.

The aim of the project is to maximise the return from screening of disease targets and minimise time-wasting false positives, said Tripos.

Meanwhile, US-based biotech firm Clinical Data has announced the acquisition of private German company Epidauros Biotechnologie for €8.75m.

The new purchase brings Clinical Data a pharmacogenomics services business, along with a portfolio of proprietary genetic biomarkers.

"In particular, Epidauros will provide Clinical Data with additional scientific expertise, biotechnology partnering capabilities and a deep understanding of European clinical market", said president and CEO of Clinical Data, Drew Fromkin.

"We expect the capabilities of Epidauros' laboratories to complement those of Clinical Data and to contribute a strong local presence in the important German market". In Europe the firm already has operations in the UK and France.

Specifically, the firm said it has gained biomarkers in genes relating to prominent drug transporters such as MDR1, OCT1, MRP1, and important cytochrome P450 drug metabolising genes, such as CYP2B6 and CYP2D6.

MDR1 encodes P-glycoprotein, which is involved in drug transport and known to modulate drug disposition; while the genes CYP2B6, OCT1, and MRP1 are implicated in the absorption, distribution, and metabolism of many drugs across a variety of therapeutic areas and indications.

Genes for such drug transporters "will prove to be as important as the Cytochrome P450 system in determining plasma and tissue levels of drugs, and thereby the efficacy and toxicity of drugs in disease areas including but not limited to oncology, cardiology, CNS, metabolic, and inflammatory diseases and pain", said Prof. Munir Pirmohamed, Professor of Clinical Pharmacology at The University of Liverpool, who has worked with both companies.