Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) has entered a global licensing and collaboration agreement for OncoGenex Pharmaceuticals Inc.'s (Nasdaq: OGXI) potential cancer treatment OGX-011. Teva will invest $60 million, including an equity investment.
The drug is in Phase III clinical trials and 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% 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., and Vancouver, British Columbia retains an option to co-promote OGX-011 in the US and Canada.
Teva senior VP branded products, Moshe Manor, said that the drug will be a significant part of Teva's branded oncology products.
OncoGenex Chief Executive Scott Cormack said, "The agreement provides us with capital resources for the development of OGX-011 through completion of the Phase III clinical trials and into product commercialization."
Teva's share fell 0.25% on the TASE today but after the announcement of the Canadian investment Teva's share climbed 1.76% in New York to $53.84, giving a market cap of $47.48 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2009
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