$25 million initial fee includes $9 million in research funding over two years.

Roche and Synta Pharmaceuticals entered an agreement potentially worth $1.025 billion to discover, develop, and commercialize small molecule anti-inflammatories. Roche will pay Synta $25 million upfront, which includes $9 million in research funding over the next two years.

The alliance will specifically look at a family of ion channels that are critical to immune cell function, known as calcium release-activated calcium modulator (CRACM) channels. Roche will fund research to be conducted by Synta during an initial two-year research period.

Roche could license up to three products. Development milestones across multiple indications of up to $245 million could be earned for the first product, and up to half of this amount will be paid for each of the second and third products. Synta will also receive commercialization milestones of up to $170 million for each product and tiered royalties.

Roche will own worldwide rights to develop and commercialize the products, which will be identified prior to the end of the research period. Synta retains certain co-development and co-promotion rights. Roche will bear all preclinical, clinical, and commercial costs.


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