Novacea, Inc. and Schering-Plough Corporation have entered into an exclusive worldwide license agreement for the development and commercialisation of Asentar (DN-101).
Novacea is currently, conducting a large international phase III trial (ASCENT-2) evaluating Asentar in 900 patients with androgen-independent prostate cancer (AIPC). Asentar is a novel, proprietary, high-dose oral formulation of calcitriol, a potent hormone that exerts its effects through the vitamin D receptor (VDR).
Under the terms of the agreement, Novacea will receive an upfront payment of $60 million, including $35 million as reimbursement for past research and development expenses, a license fee of $25 million, as well as a commitment by Schering-Plough to purchase $12 million of Novacea common stock at a predetermined price within ten days of the closing. Additionally, the agreement provides Novacea with potential pre-commercial milestone payments of up to $380 million, and tiered royalties on worldwide sales of Asentar. Closing of the transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) and is anticipated to occur following HSR clearance.
Schering-Plough will be responsible for all forward development costs in exploring indications for earlier stages of prostate cancer, such as androgen- dependent prostate cancer (ADPC) 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.
"A corporate partnership has been a significant corporate goal for 2007, and we are proud to be co-developing Asentar with a highly-respected pharmaceutical company such as Schering-Plough. The partnership leverages Novacea's existing capabilities with Schering-Plough's experienced development, regulatory and commercial teams and will provide Novacea with an opportunity to support the commercialisation of Asentar in the United States. Additionally, this agreement provides us with substantial funding for the continued development of our operations," said John P Walker, Novacea's chairman and interim chief executive officer.
"This agreement with Novacea allows us the potential opportunity to extend our oncology pipeline into a tumour with significant unmet need," said Thomas P Koestler, PhD. executive vice president and president of Schering-Plough Research Institute. "Asentar represents an innovative research development and reinforces our continual commitment to patients."