Schering-Plough Pledges over $477M in Deal with Aveo
Preclinical antibody has shown efficacy in cancer.!--h2>
Aveo Pharmaceuticals entered into agreement with Schering-Plough to develop and commercialize AV-299. Aveo reports that this antibody is a highly potent antagonist of hepatocyte growth factor/scatter factor (HGF/SF) and has demonstrated efficacy in preclinical models of human cancer.
Aveo’s Human Response Prediction (HRP™) platform will be utilized to guide the clinical development of AV-299. It is expected to enter trials in early 2008.
Under the terms of the exclusive, worldwide agreement, Aveo will receive a $7.5-million upfront payment and a $10-million equity investment. It will have primary responsibility for clinical development of AV-299 through proof-of-concept in man. Aveo will also apply its HRP platform during a multiyear translational research program designed to discover biomarker profiles of patients most likely to benefit from treatment with AV-299. Schering-Plough will fund all research and development expenses.
Milestone payments for the successful development and commercialization of AV-299 could exceed $460 million, according to Schering-Plough. Upon commercialization, Aveo is eligible to receive royalties on net sales. It also retains the option to co-promote AV-299 in the U.S. for certain oncology indications.