Rexahn Pharmaceuticals and Teva Pharmaceutical Industries to Jointly Develop Novel Anti-Cancer Compound
Thu, 09/17/2009 - 4:28am
ROCKVILLE, Md.-- (BUSINESS WIRE) — Sep. 17, 2009-- Rexahn Pharmaceuticals, Inc., a clinical stage pharmaceutical company commercializing potential best in class oncology and central nervous system (CNS) therapeutics, today announced that it has reached an agreement to close on its previously announced licensing and stock purchase agreements with Teva Pharmaceutical Industries Limited, for the development of its novel anti-cancer compound, RX-3117. RX-3117 is a small molecule, new chemical entity (NCE), nucleoside compound that has an anti-metabolite mechanism of action, and has therapeutic potential in a broad range of cancers including colon, lung and pancreatic cancer. Closing of the transaction is expected to occur on September 21, 2009. The companies reached an agreement with respect to the commercialization and development of RX-3117, under which on September 16, 2009 Teva agreed to purchase shares of Rexahn's common stock for $3.5 million. Rexahn will be eligible to receive additional development, regulatory and sales milestone payments. In addition, Rexahn will receive royalties on net sales worldwide. Under the terms of the deal, Teva may also make an additional equity investment in Rexahn within the next 12 months. Dr. Chang Ahn, Rexahn's Chairman and Chief Executive Officer stated, "Our strong pre-clinical pipeline is a major strength of Rexahn, and we are pleased that Teva recognizes the commercial potential of this discovery. Our agreements with Teva further validate the strength of Rexahn's drug discovery capabilities and the inherent value of our growing pre-clinical portfolio in oncology. These agreements also provide Rexahn with another secure revenue stream that further supports our push to bring our three very promising Phase II compounds, Archexin(TM), Serdaxin(TM) and Zoraxel(TM), to market." "We are very excited to forge this new relationship with Rexahn and have great hopes for RX-3117," Dr. Aharon Schwartz stated, Vice President of Teva Innovative Ventures. Schwartz continued, "Our agreement with Rexahn underscores Teva's commitment to bolstering its innovative pipeline through licensing of promising compounds. With a focus on oncology, auto-immune and neurology, Teva Innovative Ventures seeks partnerships with companies and academia to develop new specialty medicines."