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AVEO Pharmaceuticals, Inc. AVEO announced that it has entered into an exclusive collaboration and license agreement granting CANbridge Life Sciences global rights (excluding the U.S, Canada and Mexico) to AV-203.
We remind investors that AVEO had regained worldwide rights to AV-203 from Biogen Inc. BIIB in Mar 2014.
Terms of the Agreement
The deal will see AVEO receiving an upfront payment of $1 million plus up to $133 million in reimbursement and milestone payments on the achievement of specified development, regulatory and commercialization targets. The company will also be entitled to receive tiered royalty ranging in the low double-digit percentage range on net sales of AV-203 in the agreement’s territories.
Under the collaboration, costs for carrying out a development plan will be borne by CANbridge Life Sciences. The development plan includes additional manufacturing requirements as well as pre-clinical and clinical studies that are required to demonstrate proof-of-concept of AV-203 for the treatment of squamous cell esophagus cancer including a phase IIa proof-of-concept study meeting on mutually agreed upon criteria.
Following the completion of proof-of-concept studies, AVEO and CANbridge will negotiate a possible agreement under which they may co-develop AV-203 with each party bearing a percentage of the cost of global development activities based on respective geographic rights. However, if the parties fail to arrive at such an agreement, CANbridge may continue the development of AV-203 on its own in markets outside the U.S., Canada and Mexico.
We are positive on the deal, which allows AVEO to retain North American rights to AV-203. The candidate is an ErbB3 (also known as HER3) inhibitory antibody. The company has till now completed an open-label, dose-escalation phase I study on AV-203 in patients with advanced solid tumors.
We note that AVEO has agreements with Ophthotech Corporation OPHT, EUSA Pharma and Pharmstandard for its lead pipeline candidate, tivozanib. Additionally, the company has an agreement with Novartis AG NVS for the development and commercialization of its other pipeline candidate, AV-380.
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