Company News: Lilly and Incyte
Teva entered an agreement to in-license Phase-III oncology drug OGX-011 from OncoGenex Pharmaceuticals as well as purchase shares in the biopharma firm. OGX-011, for use in enhancing chemotherapy, is scheduled to begin Phase III trials in 2010 and 2011 among patients with advanced prostate cancer and non-small cell lung cancer. Teva will provide OncoGenex with a $60-million initial cash payment, including a $10-million equity investment in OncoGenex common stock at a price of $37.38 per share, upfront payment of $20 million and prepayment of $30 million for OncoGenex's contribution to OGX-011 development costs. OncoGenex will be eligible to receive up to $370 million in milestone payments and tiered royalties on sales. Teva is responsible for all commercialization and development expenses, and OncoGenex retains an option to co-promote OGX-011 in the US and Canada.