Zeltia Group announced an agreement with Ortho Biotech Products L. P., a subsidiary in the Johnson & Johnson family of companies, to co-develop and co-market an oncology compound that is being studied for a variety of cancers.

The anti-tumor compound, known as ET-743, was originally isolated from a marine invertebrate and is being developed by PharmaMar, a subsidiary of Zeltia. Phase II clinical trials of the compound have shown positive results in sarcoma, breast cancer and other tumors, and a comprehensive development program to further study ET-743 is in place.

PharmaMar will co-develop ET-743 with Ortho Biotech for potential use in the treatment of cancer. Ortho Biotech will market ET-743 worldwide, with the exception of Europe, where PharmaMar will market the compound. PharmaMar will manufacture ET-743 drug substance for worldwide use.

"Zeltia is particularly delighted to partner with Ortho Biotech," said Dr. Jose Maria Fernandez Sousa-Faro, Chairman of Zeltia. "Ortho Biotech today has a leading market presence in the US with Procrit, Duragesic, and Doxil and is one of the largest and most capable commercial and development organizations in oncology. We are very pleased that Ortho Biotech is committed to further strengthening its position in the oncology market by making strategic agreements for promising compounds. This partnership provides Zeltia with substantial research and marketing expertise that will complement and enhance our ongoing development of ET-743. Together, we hope to bring to market a significant cancer treatment."

PharmaMar will receive a fee on the effective date of the agreement and the deal provides the company with development investments and milestone payments that are tied to achieving near term clinical development goals. In addition, as future regulatory filings are made and as product approvals are granted in certain major markets, PharmaMar will receive payments as these events occur. In addition, PharmaMar will receive royalties based on the sales of ET-743 following such approvals in the Ortho Biotech territory.