Array may receive up to US$425m in agreement to develop novel oncology products
Array BioPharma closed its oncology agreement with Pierre Fabre following approval by the European Commission on Competition (ECC) towards the end of last year.
The agreement, announced on 16 November 2015, relates to globally developing and commercialising Array's late-stage novel oncology products, binimetinib and encorafenib. Binimetinib, a MEK inhibitor, and encorafenib, a BRAF inhibitor, are currently advancing in three, global Phase III trials for melanoma and ovarian cancer.
Under the terms of the agreement, US-based biopharmaceutical firm Array will receive an upfront payment of US$30m and retains exclusive commercialisation rights for binimetinib and encorafenib in the US, Canada, Japan, Korea and Israel. Pierre Fabre will have exclusive rights to commercialise both products in all other countries, including Europe, Asia and Latin America.
Array is also entitled to receive up to $425m if certain development and commercialisation milestones are achieved, and is eligible for tiered double-digit royalties.
The two firms have agreed to split future development costs on a 60:40 basis (Array:Pierre Fabre) with initial funding committed for new clinical trials in colorectal cancer and melanoma. All ongoing binimetinib and encorafenib clinical trials remain substantially funded through completion by Novartis.