Isis To Receive $10m From OncoGenex’ License Of OGX-011 To Teva

Isis will receive a $10m payment from OncoGenex Pharmaceuticals as a result of OncoGenex’ license of OGX-011 to Teva. OGX-011 is an antisense drug co-discovered by Isis and OncoGenex that has completed a successful phase 2 program in patients with advanced prostate cancer and advanced non-small cell lung cancer.

Teva and OncoGenex will collaborate on a global phase 3 clinical program for OGX-011 in patients with prostate and non-small cell lung cancer.

Lynne Parshall, COO and CFO of Isis, said: “We are pleased with OncoGenex’ selection of Teva Pharmaceuticals, a leading pharmaceutical company, as a partner to complete the development and commercialization of OGX-011. OGX-011 will be the second antisense drug to enter Phase 3 development from our second-generation antisense technology. We are encouraged by the Phase 2 results of OGX-011 presented earlier this year in patients with advanced prostate cancer and look forward to the drug progressing into a broad Phase 3 program.

“2009 has been an eventful year for Isis’ satellite companies, continuing to affirm our strategy of maximizing the value of our antisense drug discovery platform with both traditional and unique partnerships. Not only do these relationships provide continuing short-term benefit, but, as drugs move forward in the hands of capable partners, they promise significant benefit to patients and more significant financial rewards to Isis in the future.”

Under the terms of OncoGenex’ agreements with Teva, Isis will receive $10m of the upfront monies paid. This constitutes 30% of the $20m license fee and 30% of the premium on Teva’s equity investment in OncoGenex as well as a portion of the $30m prepaid development costs that OncoGenex will subsequently contribute to the development of OGX-011. Isis will also receive 30% of the $370m in milestone payments OncoGenex is eligible to receive in addition to 5.5 – 7% royalties on all sales of OGX-011.