Avalon to develop Vertex cancer agent

Under the terms of the agreement, Avalon will hold exclusive rights to develop and commercialize VX-944 worldwide for the treatment of various cancers.

Avalon will make up to $73 million in up-front license fees and milestone payments to Vertex based on the successful development and commercialization of VX-944 in oncology. Upon commercialization, Vertex will receive royalties on product sales. Vertex retains certain rights to co-promote VX-944 in US and European markets.

VX-944, a small molecule IMPDH inhibitor discovered by Vertex, has completed a single-dose, phase I study in healthy volunteers. Recent reports in medical literature and presentations at scientific conferences provide a strong clinical rationale for the development of IMPDH inhibitors generally, and VX-944 specifically, in hematologic malignancies.

Results presented at the Annual Meeting of the American Society of Hematology in December 2004 indicated that VX-944 inhibited the in vitro proliferation of lymphoid and myeloid cells, the principal cells involved in the most common types of human leukemias. In addition, VX-944 was shown to significantly prolong survival in a model of aggressive mouse leukemia.

Based on these results, Avalon plans to initiate a clinical trial with VX-944 in a hematologic cancer indication in the second half of 2005. In addition, Avalon expects to use its chemical genomics platform to evaluate VX- 944’s potential in the treatment of solid tumors.

“Based on its unique anti-proliferative mechanism, VX-944 holds strong potential in the treatment of hematologic cancers, as well as other tumor types,” said Dr Joshua Boger, chairman and CEO of Vertex. “This licensing agreement with Avalon places VX-944 in the hands of a committed partner. We expect that Avalon will rapidly advance this compound from early development to clinical proof-of-concept, fulfilling an important strategic objective for the VX-944 program.”