Medivation takes up $335 million Curetech licensing option

–

The agreement gives Medivation the license to develop and commercialize Curetech’s pidilizumab cancer treatment.

–

Medivation has decided to exercise the option granted it by Curetech to continue the licensing agreement between the parties, Clal Biotechnology Industries Ltd. (TASE: CBI) reported to the TASE today. Clal Biotechnology owns 53% of Curetech. The agreement gives Medivation an exclusive global license to develop and commercialize pidilizumab, a drug for treating cancer developed by Curetech.

Under the terms of the license agreement, CureTech will receive an upfront payment of up to $5 million from Medivation, potential payments of up to $85 million contingent on achievement of milestones involving agreements for development of the drug and attaining regulatory approval for marketing in various territories, and up to $245 million in additional future payments contingent on achievement of specific annual sales volumes for products based on the drug (minimum sales for receiving sales-dependent payments were set at $400 million). Curetech will also be entitled to 5-11% royalties on sales, depending on the volume of annual sales.

Under the license agreement, Medivation will be responsible for all development, regulatory and commercialization activities for pidilizumab. In addition, under the supply and production services agreement, Curetech undertook to produce the drug for Medivation for the first three years following the date on which the agreement was signed. Curetech will produce the drug according to quantities determined in advance, based on the expected production costs, for $22.5 million.

Curetech will provide Medivation with all the know-how involved in producing the drug. After the delivery of the information has been completed, Curetech will be entitled to an additional milestone payment of $5 million.

Published by Globes [online], Israel business news – www.globes-online.com