Ariad and Medinol Strike Stent Accord

Cambridge, MA-based Ariad Pharmaceuticals will provide Israel-based Medinol, a cardiac stent maker, its cancer drug candidate for use in Medinol drug-coated stents in a deal that could be worth $39 million plus royalty payments.

According to the agreement, Ariad will supply to Medinol its AP23573, which is currently in clinical trials. Medinol will be responsible for the development and commercialization of the medical devices.

Medinol may face an uphill battle in commercializing its product. It is currently involved in a lawsuit with a former partner, Natick, MA-based Boston Scientific, the coronary drug stent market leader. Medinol has charged that Boston Scientific secretly set up a factory in Ireland to manufacture the Medinol stents without its permission. A federal district court in New York City ruled last December that the case, in which Medinol claims Boston Scientific is guilty of breach of contract, can go forward. Medinol is seeking royalties on the sales of the Taxus Express stents.