Serono secures license for Rigel’s anticancer candidates

Under the terms of the agreement, Rigel will receive initial payments totaling $25 million, comprised of a license fee of $10 million and purchase of $15 million of Rigel’s common stock, at a premium to the market price.

With additional development and sales-based milestone payments for its lead drug candidate, R763, Rigel could receive up to $160 million in total, as well as royalties on any eventual product sales of R763 and other Aurora kinase inhibitors developed under the agreement.

The license acquired is worldwide, except for Japan, which Serono has an option to include at any time within the next two years.

Rigel’s Aurora kinase inhibitor program includes R763, for which Rigel expects to file an investigational new drug application in December 2005.

R763 is a highly potent, orally-available multi-Aurora kinase inhibitor that has been shown in xenograft models to inhibit proliferation and trigger apoptosis in several cancer types including the cervical, colon, lung, pancreas and prostate cancers.

Serono will be responsible for the further development and commercialization of R763, as well as any other product candidates arising from Rigel’s Aurora kinase inhibitor program.

“We believe that inhibition of Aurora kinase is a promising approach to treating cancer and Rigel has produced some of the most promising candidates we have seen. We look forward to moving R763 into the clinic in 2006,” said Dr Tim Wells, senior executive vice president, R&D, Serono.