Antisoma believes the deal will provide it with extra resources it can use to further expand its pipeline and to exploit the value in its present portfolio. The company said the deal was an excellent opportunity to gain direct involvement in selling its own products.
Of the near-term payments, $75 million will be paid immediately and a further $25 million when the agent AS1404 enters a phase III trial in lung cancer.
Antisoma will be eligible for milestone payments of up to $890 million, contingent upon successful development and marketing of AS1404 in multiple indications. Furthermore, Antisoma will receive royalties on AS1404 sales and will have an option to co-commercialize the drug in the US.
Novartis will fund and conduct all future development of AS1404. The agreement also includes the potential for Novartis to fund certain of Antisoma’s commercialization costs.
Novartis’ development plans for AS1404 include a phase III study in squamous non-small cell lung cancer, expected to start early in 2008, and a number of supporting studies in lung and other cancers. There will also be phase III trials in prostate and ovarian cancers if final results from phase II trials are positive.