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news.Adherex Technologies has seen its stock rise over 15% after completing a drug development agreement with GlaxoSmithKline that could earn the North Carolina-based biopharmaceutical company up to $220 million.
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According to the terms of their agreement, Adherex will license and develop GSK’s cancer compound, eniluracil. The London-based drugmaker will retain an option to reacquire the rights to eniluracil at which point Adherex would be eligible to receive development and sales milestone payments of up to $120 million.
In addition, Adherex has granted GSK an option to develop its lead compound ADH-1, which is being developed to treat breast, lung, ovarian and skin cancers. Adherex could earn up to $100 million in this part of the development agreement.
ADH-1 is currently in phase Ib/II and phase II trials after its initial phase I trial demonstrated encouraging evidence of anti-tumor activity.
“Either of these licensing deals would be of major importance for Adherex alone, but the combination is a transforming event for the company,” said Dr William Peters, Chairman and CEO of Adherex. “The in-licensing of eniluracil provides Adherex with potential ‘blockbusters’ on both sides of our business: ADH-1 from our cadherin-based biotechnology platform and eniluracil from our specialty pharmaceuticals portfolio.”