ArQule received a $3 million milestone payment from Kyowa Hakko Kogyo. The fee was triggered by Kyowa’s initiation of a Phase I dose-escalation trial in Japan with ArQule’s lead anticancer agent. ARQ 197 is a small molecule, selective inhibitor of the c-Met receptor tyrosine kinase.
This payment was made under the terms of a license agreement inked in April 2007. It includes $123 million in upfront and potential development milestone payments from Kyowa, of which ArQule previously received a $30 million cash licensing fee. The agreement also includes sales milestone payments and provides double-digit royalties on net sales in certain Asian countries. Kyowa is responsible for clinical development costs and commercialization in these regions.
ArQule retains rights to ARQ 197 in the rest of the world. In the U.S., the company has initiated a Phase II program with this compound that includes ongoing trials in microphthalmia transcription factor-driven pediatric tumors and pancreatic cancer.