Novelos to initially receive $10 million to finish trials, and the rest will come with launch and sales achievements.
Novelos Therapeutics entered an exclusive agreement with Mundipharma to commercialize its late-stage non-small-cell lung cancer drug in Europe and Asia (China is excluded). While Novelos stands to receive up to $85 million in post-development milestone fees, it will immediately obtain $10 million through a private placement with Purdue Pharma, an independent associated company of Mundipharma.
“This transaction will provide the remaining capital to complete our pivotal, fully-enrolled, 840-patient Phase III lung cancer trial, which is currently expected to conclude in late 2009,” says Harry Palmin, president and CEO of Novelos.
Under the agreement, Novelos stands to receive up to $25 million with the launch of NOV-002 and $60 million depending on the achievement of fixed sales levels. The company may also receive double-digit royalties, which will increase if annual sales rise in the licensed territories.
Mundipharma will be responsible for certain development activities, regulatory submissions, and commercialization of NOV-002 in Europe and Asia excluding China. Novelos will retain all rights and responsibilities in the Americas.
The private placement with Purdue Pharma was secured through the sale of 200 shares of Series E convertible preferred stock. NOV-002 works in conjunction with chemotherapy as a chemoprotectant and a chemopotentiator.
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