Novacea, Inc. has received $60 million from Schering-Plough Corporation under the terms of the previously announced worldwide development and commercialisation agreement for Asentar (DN-101). The payment from the closing of this transaction follows the early termination by the United States federal trade commission of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Under the terms of the development and commercialisation agreement, Novacea received an upfront payment of $60 million, including $35 million as reimbursement for past research and development expenses and a license fee of $25 million. In addition, pursuant to a related stock purchase agreement, Schering-Plough purchased $12 million of Novacea common stock. The development and commercialisation agreement provides Novacea with potential pre-commercial milestone payments of up to $380 million, and royalties on worldwide sales of Asentar based on tiered royalty percentage rates.
Schering-Plough also will be responsible for all forward development costs in exploring indications for earlier stages of prostate cancer, such as androgen-dependent prostate cancer and adjuvant therapy and will lead all global commercialisation efforts for Asentar. Novacea will provide medical support to Schering-Plough's commercial operations for Asentar in the United States, including deployment of their Medical Science Liaisons, which will be funded by Schering-Plough.