MethylGene will be responsible for the design, synthesis, characterization and initial screening of kinase inhibitors. Otsuka will be responsible for and fund efficacy and toxicology studies, as well as preclinical and clinical development of compounds. Otsuka is also responsible for the global commercialization of any resulting product.
Under the financial terms of the agreement, MethylGene will receive an upfront license fee of $2 million and may receive additional payments based on successful development, regulatory, commercialization and sales milestones that could total $50.5 million. Otsuka will also provide MethylGene with a minimum of $1.875 million in research funding for the initial 18 months of the research collaboration, which can be extended with additional funding from Otsuka. MethylGene will receive royalties on net sales for any resulting product.
Donald Corcoran, president and CEO of MethylGene, said: “We are pleased to have Otsuka, a leading Japanese multi-national pharmaceutical company, as our partner for this exciting project. This is another example of leveraging our strong research capability into indications beyond cancer and our ability to strategically partner with industry leaders in order to fully realize the value of our technology.”