ArQule inked a deal with Kyowa Hakko Kogyo worth over $123 million related to its anticancer candidate, ARQ 197. ARQ 197 is a small molecule, selective inhibitor of the c-Met receptor tyrosine kinase in a Phase I trial.
“We are excited to enter into a partnership with a world-class Japanese company whose oncology franchise positions it strongly in Asian markets and whose resources will allow it to develop and commercialize ARQ 197 on a timely basis,” states Stephen A. Hill, president and CEO of ArQule. “Kyowa is able to leverage an impressive array of clinical development, manufacturing, sales, and marketing capabilities that will help realize the full potential of ARQ 197 and deliver its benefits to cancer patients in Asia.”
According to this exclusive license deal, Kyowa will pay a $30-million cash upfront licensing fee and up to $93 million in potential development milestones. The agreement also includes sales milestone payments. Additionally, ArQule will receive double-digit royalties on net sales of ARQ 197. Kyowa will be responsible for clinical development costs and commercialization of the compound in certain Asian countries, including Japan, China, South Korea, and Taiwan.