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news.AkaRx and MGI Pharma have revealed that their previously announced development and license agreement has become effective. The agreement provides MGI Pharma with the exclusive rights to develop AKR-501 for the treatment of thrombocytopenia, and an option to acquire AkaRx at MGI Pharma's sole discretion at any time up to January 8, 2010.
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In accordance with the terms of the transaction, MGI Pharma has made payments of $45 million, in the aggregate, to AkaRx and its shareholders to acquire certain license rights and the right to acquire all of AkaRx’s capital stock from AkaRx shareholders at any time prior to January 8, 2010.
Under the terms of the development and license agreement, MGI Pharma has assumed responsibility for certain development activities during the option period. If MGI Pharma elects to exercise its option to acquire all of AkaRx’s capital stock, additional payments of approximately $255 million would be made at that time.
As part of the agreements, MGI Pharma also obtained rights to AKR-201, a metabolite of thyroid hormone targeting thyroid cancer. AKR-201 is in pre-clinical development and has received an orphan drug designation from the FDA.