Ignyta has acquired worldwide rights and assets relating to four targeted oncology development programs from Teva Pharmaceutical Industries, in return for an equity investment in Ignyta from Teva and other investors valued at $41.6 million.
Under the deal, announced yesterday by both companies, Ignyta purchased rights from Teva to:
- CEP-32496, which Ignyta has renamed RXDX-105. The potent small molecule inhibitor of BRAF, EGFR, and RET is now in a Phase I/II dose escalation clinical trial;
- CEP-40783, which Ignyta has renamed RXDX-106. The potent, highly selective, pseudo-irreversible inhibitor of AXL and cMET is in late preclinical development;
- CEP-40125, which Ignyta has renamed RXDX-107. The nanoformulation of a modified bendamustine with potential activity in solid tumors is in late preclinical development;
- TEV-44229, which Ignyta has renamed RXDX-108, a potent, selective inhibitor of the atypical kinase PKCiota that is in preclinical studies. Ignyta has also acquired next generation PKCiota inhibitors in addition to the lead compound.
“These oncology programs add critical mass to our pipeline and further enable us to leverage our precision oncology platform, including our proprietary multiplex diagnostic assays and our CLIA certified, QSR compliant diagnostic laboratory,” Jonathan Lim, M.D., Ignyta’s chairman and CEO, said in a statement.
“Furthermore, these new assets complement our entrectinib development program and extend our ability to target the majority of known oncogenic drivers across multiple solid tumor indications,” Dr. Lim stated.
Teva said in October 2014 it is retreating from oncology as a core therapeutic area. Two months later, OncoGen Pharmaceuticals terminated a five-year-old collaboration with Teva and regained rights to custirsen, a Phase III compound under study for prostate and lung cancers.
“Ignyta’s capabilities and focus in oncology will give these assets the best chance of realizing their potential for patients, and of maximizing their value for Teva,” stated Michael Hayden, Teva’s president of global R&D and CSO.
Teva will hold about 12% of Ignyta shares as a result of the deal. In exchange for the four compounds, Teva agreed to acquire 1.5 million shares (6%) of Ignyta’s common stock—which Teva has agreed not to sell or transfer until March 17, 2016. Ignyta is required to register the resale of these shares with the Securities and Exchange Commission (SEC) prior to such date.
Teva also agreed to buy another 1.5 million shares (6%) of Ignyta common stock that Teva at $10 per share in a registered direct offering, while several additional healthcare investors not named in the announcement agreed to purchase an combined 2.7 million additional shares of Ignyta common stock at the same price.