This agreement resulted from the strategic alliance entered into by Tacere and Oncolys in June 2007, whereby Oncolys was granted an option to acquire the Asian rights for TT-033. Under the terms of the agreement, Oncolys and Tacere will form a joint steering committee that will work with the Tacere and Pfizer steering committee to oversee preclinical R&D efforts for TT-033 (code-named by Oncolys as OBP-701).
In addition to an up-front payment, Tacere will be eligible to receive milestone payments through successful achievement of development, approval, and commercialization milestones resulting in total potential payments to Tacere of up to $60 million. Upon commercialization of TT-033, Tacere would be entitled to receive royalties on net sales by Oncolys.
Further, if Oncolys sublicenses its rights under the strategic alliance to any major pharmaceutical company, the milestone payments and sales royalties Oncolys receives will be shared with Tacere at predetermined rates based upon the stage of development at which the milestones occur.