PPD, Inc. has entered an agreement with Janssen Pharmaceutica to develop and commercialize two Phase II therapeutic compounds, one for diarrhea-predominant irritable bowel syndrome (IBS-d) and one for complicated skin and skin structure and respiratory infections.

PPD in-licensed the two compounds and will advance them through Phase II development. At the completion of Phase II, Janssen will have the option to resume development and commercialization. In exchange, PPD will receive as much as $330 million in clinical and sales milestones, as well as royalties on sales. If Janssen doesn’t chose to take over the program, PPD will have the option to continue development and commercialization and Janssen will receive as much as $250 million in clinical and sales milestones and royalties.

"Our agreements with Janssen diversify and strengthen our compound partnering portfolio and may gain us entry into two large markets," said Fred Eshelman, executive chairman of PPD. "The IBS-d market holds significant drug development potential because of the lack of approved products for this indication, and new antibiotics are needed to address increasing incidences of resistant strain bacterial infections."

The IBS-d compound is a potential locally active mu opioid receptor agonist and delta opioid receptor antagonist. The anti-bacterial compound is a broad-spectrum fluoroquinolone potential antibiotic with activity against gram positive and gram negative bacteria and methicillin-resistant staph aureus (MRSA). It is being developed as both an oral and intravenous therapy to treat skin and respiratory infections.

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