Mersana Therapeutics, a platform-based cancer therapeutics company, has entered into a research and exclusive license agreement with Teva Pharmaceutical Industries Ltd. to develop and commercialize XMT-1107, a novel fumagillin analog, for the treatment of all indications, including cancer. Mersana plans to initiate a phase-1 clinical trial for XMT-1107 in the second quarter of 2010. XMT-1107 will be the company's second oncology product to enter the clinic. Mersana's XMT-1001, a conjugate of Fleximer and camptothecin (CPT), is currently completing a phase-1 study.

Under the terms of the agreement, Teva will receive an exclusive license to XMT-1107 for all indications worldwide, excluding Japan, for which Mersana will retain rights. Mersana will be eligible to receive up to US$ 334 million if all development, regulatory and commercial milestones are met across several indications. In addition, Mersana will be eligible to receive royalties on net sales worldwide. Teva will cover all development costs for XMT-1107, excluding those specific to Japan.

"We are very pleased to enter into this partnership with Teva as it not only provides the necessary resources for XMT-1107 to achieve broad therapeutic potential but also validates our Fleximer platform as a means to generate novel products," said Julie Olson, president and CEO of Mersana. "We have now produced two clinical-stage oncology products and look forward to progressing our lead programme, XMT-1001, beyond phase-1 studies and to further expanding our Fleximer-based siRNA delivery programme."

"Our agreement with Mersana is yet another example of Teva's commitment to earlystage partnering as a means to enhance our innovative pipeline," said Dr Aharon Schwartz, vice president of Teva Innovative Ventures. "We have been impressed by Mersana's success with the Fleximer technology and the potential of XMT-1107. With a focus on oncology, auto-immune and neurology, Teva, through its Innovative Ventures group, seeks partnerships with companies and academia to develop new specialty
medicines."

XMT-1107 is a conjugate of Fleximer and a novel analog of fumagillin, an angiogenesis inhibitor with a mechanism of action distinct from agents that principally target vascular endothelial growth factor (VEGF).

Fleximer is a novel, biodegradable and bio-inert polymer that can be chemically linked to small molecules, biologics and nucleic acids to enhance their pharmacokinetic and safety profiles.

Mersana Therapeutics is advancing its own clinical-stage pipeline of novel compounds with the potential to address multiple oncology indications.