Astellas PharmaInc. and Medivation, Inc. announced today thatthey have entered into a global agreement to develop and commercializeMDV3100, Medivation's investigational drug for the treatment of prostatecancer. MDV3100 is currently being evaluated in the Phase 3 AFFIRM clinicaltrial in men with castration-resistant prostate cancer who were previouslytreated with docetaxel-based chemotherapy. Under the terms of the agreement, Medivation will receive an up-front cashpayment of $110 million. Medivation is also eligible to receive payments ofup to $335 million upon the attainment of development and regulatorymilestones plus up to an additional $320 million in commercial milestonepayments. The companies will collaborate on a comprehensive developmentprogram that will include additional studies to develop MDV3100 for both late-and early-stage prostate cancer. Subject to receipt of regulatory approval,the companies will jointly commercialize MDV3100 in the U.S. The companieswill share equally all U.S. development costs, commercialization costs, andprofits. Astellas will have responsibility for developing and commercializingMDV3100 outside the U.S. and will pay Medivation tiered double-digit royaltieson ex-U.S. sales. "We are pleased to initiate a great partnership with Medivation," statedMasafumi Nogimori, president and chief executive officer of Astellas. "Webelieve that MDV3100 has the unique potential to establish a new treatmentapproach for prostate cancer. Astellas already has the global expertise inurology and the strong commitment to focus on oncology. This partnership is asignificant milestone to further expand our business in urology and toestablish our franchise in oncology." "We are excited to be working with Astellas to develop MDV3100 for a broadspectrum of prostate cancer disease states," said David Hung, M.D., presidentand chief executive officer of Medivation. "Astellas is an ideal partner forMDV3100 given its global reach, leading commercial presence in the urologyspace, and strategic focus on oncology. Astellas is the second majorcollaboration we have completed in the past year, and we are confident we havethe right partners in place for each of our late-stage programs--Astellas forMDV3100 and Pfizer, Inc for dimebon (latrepirdine…)."