Teva signs licensing agreement with OncoGenex
Israel\'s Teva Pharmaceutical Industries will pay US$60m to OncoGenex Pharmaceuticals in a licensing agreement to develop OncoGenex\'s potential cancer treatment OGX-011.
Israel's Teva Pharmaceutical Industries will pay US$60m to OncoGenex Pharmaceuticals in a licensing agreement to develop OncoGenex's potential cancer treatment OGX-011.
OGX-011 is a Phase III cancer therapy designed to inhibit cancer treatment resistance. It is expected to be used as adjunct therapy to enhance the effectiveness of chemotherapy and has shown promising results in several tumour types.
Under the terms of the deal, OncoGenex will receive US$60m up front, which includes a US$10m equity investment, US$20m in cash and US$30m as a pre-payment for development costs.
US-based OncoGenex will also be eligible to receive up to US$370m in milestone payments and royalties.
"The agreement provides us with capital resources for the development of OGX-011 through completion of the Phase III clinical trials and into product commercialisation," said Scott Cormack, president and ceo of OncoGenex. "We're creating a solid foundation to maximise the broad potential of OGX-011 and bring this important treatment option to cancer patients."
Teva said the agreement will enhance its oncology offerings and strengthen its global branded product pipeline with a promising product candidate entering three Phase III trials.
Teva and OncoGenex will collaborate on a global Phase III clinical programme and two Phase III clinical trials will start in 2010. An additional Phase III study will start by early 2011.
"We see OGX-011 as a key component of our branded oncology medicines franchise, expanding our pipeline of existing oncology therapeutics and broadening the future available therapies made by Teva for oncology patients and care providers," said Moshe Manor, Teva's group vp, Global Branded Products. "In addition to prostate cancer, we are particularly enthusiastic about the therapeutic activity seen in the Phase II clinical trial in lung cancer."
