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news.San Diego-based biotech firm SGX Pharmaceuticals has reached a deal with the Swiss drugmaker Novartis, thought to be worth over $515 million, for the development of leukemia therapies.
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The collaboration is focused on the development and commercialization of
BCR-ABL inhibitors for the treatment of drug resistant chronic myelogenous leukemia (CML). The new agreement will see SGX receive $25 million in upfront payments with Novartis also purchasing SGX common stock.
Along with success-based milestones, but excluding royalties, total payments to SGX could exceed $515 million, including a minimum of two years of research funding.
Gleevec (imatinib), the blockbuster drug produced by Novartis, has been shown to help patients with this form of leukemia. However, some of those treated have been known to develop resistance to Gleevec or cannot tolerate the therapy. For these patients there are currently no other approved treatment options.
Drug candidates from SGX’s lead series, developed from its FAST proprietary drug discovery platform, have exhibited potency against these resistant forms of the disease.
SGX retains an option to co-commercialize, in the US, oncology products developed under the agreement. If exercised, the option would enable SGX to reinforce the commercial presence in the North American hematology markets which the company hopes to establish with the potential launch of Troxatyl in the second half of 2007.