Roche and ArQule announced a partnership to discover and develop drug candidates targeting a new pathway in order to selectively kill cancer cells. The pathway influences the activation of a key cell death regulator called E2F. The activation of E2F plays a critical role in the programmed death of cancer cells, while leaving healthy cells unharmed. The partnership includes a compound in phase I clinical development.

"We are very excited about the possibility of specifically targeting cancer cells through the E2F pathway," said William M. Burns, Head of Roche's Pharmaceutical Division. "This broad alliance with ArQule adds to our existing programs with partners to develop clinically differentiated oncology drugs."

Under the terms of the agreement, Roche obtains an option to ArQule's E2F program in the field of cancer therapy. Roche will provide immediate research funding of $15 million, and significant financial support for ongoing research and development. ArQule will be responsible for advancing drug candidates from early stage development into phase II trials. Roche may opt to license worldwide rights for the development and commercialization of products resulting from this collaboration, by paying an option fee. Assuming the successful development and commercialization of a compound under the program, ArQule could receive up to $276 million in payments, plus royalties. Additionally, ArQule has the option to co-promote products in the US.

"I view this partnership as the ideal combination of large and small company excellence in oncology. It allows Roche to access ArQule's expertise in E2F-related cancer biology and chemistry technology and provides ArQule with access to Roche's proven expertise in all aspects of oncology R&D and marketing," commented Dr Stephen A. Hill, president and CEO of ArQule. Dr Hill continued, "I believe this collaboration goes a long way to validating ArQule's emergence as a serious contributor to oncology research and development. Moreover, it does so in a way that allows us to continue to grow and develop as a company." ArQule's Activated Checkpoint TherapySM platform comprises a portfolio of novel mechanistic approaches to cancer therapy. ArQule retains all rights to those programs that work independently of the E2F pathway.