Radius granted the firm an option to the exclusive, worldwide rights excluding Japan.
Radius Health granted Novartis an option to obtain an exclusive worldwide license, excluding Japan, to its osteoporosis compound. The deal is worth over $375 million for Radius and $125 million to Ipsen, the original holder of the rights pertaining to BA058. This Phase II candidate is a PTHrP (parathyroid hormone-related protein) analogue.
If Novartis exercises its right, Radius stands to earn $500 million in upfront and milestone-based fees plus royalties. Novartis will then assume the global clinical development, manufacturing, and marketing of BA058 in all regions except Japan. Radius has retained the option to co-commercialize the medication in the U.S.
Of the amount received from Novartis, Radius will, in turn, pay Ipsen up to $125 million related to the achievement of certain milestones as well as royalties. In September 2005 Radius gained a worldwide license to the candidate excluding Japan. Teijin previously acquired Japanese rights to the product from Ipsen.