AVEO Oncology AVEO today announced that it has entered into a
research and exclusive option agreement with Ophthotech Corporation, under
which it has provided Ophthotech an exclusive license to investigate the
potential of AVEO's small molecule vascular endothelial growth factor (VEGF)
tyrosine kinase inhibitor, tivozanib, outside of Asia for the potential
treatment of non-oncologic diseases of the eye.
Under the terms of the agreement, Ophthotech is obligated to pay AVEO an
upfront option fee of $500,000 to investigate tivozanib as a potential
treatment for non-oncologic diseases of the eye. During the option term, if
Ophthotech elects to continue development of the ocular formulation of
tivozanib after its initial analysis, AVEO is eligible to receive up to $8
million in milestone payments based upon the achievement of specified
research, development and business goals. Ophthotech has the exclusive option,
exercisable at its sole discretion, to obtain additional development and
commercialization rights to tivozanib and products containing tivozanib for
non-oncologic eye indications in territories outside Asia, subject to certain
conditions, including outcomes of a proof of concept clinical trial and the
negotiation of a definitive license agreement.
If Ophthotech exercises its option, AVEO would receive an option exercise fee
of $2 million and could also receive clinical and regulatory-based milestone
payments, of up to $50 million, sales based milestone payments of up to $45
million and royalties on product sales. Ophthotech is responsible for all
research and development activities and costs, and upon exercise of its
option, further development and commercialization activities and costs for
tivozanib ocular indications. A percentage of all upfront, milestone and
royalty payments received by AVEO are due to Kyowa Hakko Kirin as a
sublicensing fee.
"This agreement is another example of our execution against AVEO's key
strategic objective of advancing our pipeline assets through external
resources and expertise," stated Tuan Ha-Ngoc, president and chief executive
officer of AVEO. “We believe the unique properties of tivozanib make it an
ideal VEGF inhibitor for potential ocular use, and we are encouraged by
Ophthotech's interest in exploring this potential. This agreement could enable
us to realize value for tivozanib in an indication outside of cancer, while
retaining oncology rights for further development through additional potential
partnerships.”
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