Vical retains exclusive marketing rights for the drug in the US and the rest of the world outside of specified Asian countries, for which AnGes received exclusive rights.
Through a scheduled series of cash payments and equity investments totaling $22.6 million, including an initial equity investment of $6.9 million, AnGes will fund the phase III pivotal trial of Allovectin-7 to be conducted by Vical in the US in accordance with a special protocol assessment completed with the FDA.
Further payments to Vical from AnGes are dependent upon sales-based milestones if Allovectin-7 is successfully commercialized, as well as royalties on product sales in the specified Asian countries.
Vical will pay AnGes tiered royalties based on defined sales levels in the US, and fixed royalties on rest-of-world sales. Each company will be responsible for obtaining regulatory approvals in any countries where it plans to market Allovectin-7.
“We established a mutually beneficial relationship last year with AnGes in the angiogenesis field,” said Vijay Samant, president and CEO of Vical, “and we believe the Allovectin-7 agreement expands our opportunities for success. Now that we can advance this key program mitigating the financial risk of independent development, we are eager to begin the phase III trial of Allovectin-7 as soon as possible.”