Rexahn, Teva Agree To Close On License Agreement

Rexahn Pharmaceuticals (Rexahn) has reached an agreement to close on its previously announced licensing and stock purchase agreements with Teva Pharmaceutical (Teva) for the development of its novel anti-cancer compound, RX-3117.

RX-3117 is a small molecule, new chemical entity (NCE), nucleoside compound that has an anti-metabolite mechanism of action, and has therapeutic potential in a broad range of cancers including colon, lung and pancreatic cancer. Closing of the transaction is expected to occur on September 21, 2009.

Reportedly, the companies reached an agreement with respect to the commercialisation and development of RX-3117, under which on September 16, 2009 Teva agreed to purchase shares of Rexahn’s common stock for $3.5m.

The company said that it will be eligible to receive additional development, regulatory and sales milestone payments. In addition, Rexahn will receive royalties on net sales worldwide. Under the terms of the deal, Teva may also make an additional equity investment in Rexahn within the next 12 months.

Chang Ahn, chairman and CEO of Rexahn, said: “We are pleased that Teva recognises the commercial potential of this discovery. Our agreements with Teva further validate the strength of Rexahn’s drug discovery capabilities and the inherent value of our growing pre-clinical portfolio in oncology. These agreements also provide Rexahn with another secure revenue stream that further supports our push to bring our three very promising phase II compounds, Archexin, Serdaxin and Zoraxel, to market.”