Synairgen plc (LSE: SNG) has announced a global licence agreement with AstraZeneca for SNG001, a novel, inhaled interferon beta (IFN-beta) in clinical development for treating respiratory tract viral infections in patients with severe asthma and potentially other pulmonary diseases. SNG001 supports the immune system by correcting a deficiency which makes patients vulnerable to respiratory tract viral infections.  The deal could represent a key development in the treatment of severe asthma.

Under the terms of the exclusive licence agreement, AstraZeneca will pay Synairgen a $7.25 million up-front fee and potential development, regulatory and commercial milestones of up to $225 million. In addition, AstraZeneca will pay tiered royalties ranging from single-digit up to mid-teens on commercial sales. AstraZeneca will be responsible for future development costs.

Latham & Watkins represents Synairgen on the deal with a team led by London corporate partner Martin Cotterill with associate Don McCombie.