License covering U.S. and Canada includes upfront and milestone fees.

Milestone Biosciences obtained marketing rights to Access Pharmaceuticals’ cancer-related drug in the U.S. and Canada in a deal worth about $10 million. MuGard is indicated for the management of oral mucositis, a side effect of anticancer chemotherapies and radiation treatments.

The drug recently received approval and has yet to be commercialized. Milestone expects to launch MuGard in the U.S. early in the first quarter of 2009.

Milestone has assembled a team of executives with experience in oncology supportive care, reports Jeffrey B. Davis, president and CEO of Access Pharmaceuticals. Milestone’s business model is centered on in-licensing and commercializing niche oncology products. The transaction with Access marks the first such product in its portfolio.

The $10 million agreed to under the terms of the definitive license deal covers upfront fees and payments based on the achievement of certain goals. Milestone is also eligible to receive double-digit royalties.

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