Teva, OncoGenex Sign Drug Development Deal
Mon, 12/21/2009 - 3:48am
NEW YORK (AP) — Teva Pharmaceutical Industries Ltd. said Monday it entered a global licensing and collaboration agreement for OncoGenex Pharmaceuticals Inc.'s potential cancer treatment OGX-011 for $60 million, including an equity investment. The drug candidate is expected to move into late-stage development as a potential prostate and lung cancer treatment in 2010 and 2011, the companies said. The drug is expected to be used an additional therapy to enhance the effectiveness of chemotherapy. Under the deal, OncoGenex will receive $60 million up front, including a $10 million equity investment valuing its stock at $37.38 per share, which represents a 26 percent premium to its closing price of $29.65 on Friday. OncoGenex will be eligible to receive up to $370 million in milestone and other payments, along with royalties. OncoGenex, based in Bothell, Wash., retains an option to co-promote OGX-011 in the U.S. and Canada.