Under the terms of the collaboration agreement, Novelos may receive up to $25 million of launch milestones and $60 million of fixed sales-based payments. Novelos will receive a double-digit royalty, which increases as the annual sales increase in the licensed territories.
Mundipharma will be responsible for certain development activities, regulatory submissions and commercialization of NOV-002 in the licensed territories. Novelos retains all rights and responsibilities in the US and the rest of the Americas.
NOV-002 has also demonstrated positive results in Phase II trials for other cancer indications. In parallel, Novelos has also closed a private placement with Purdue Pharma resulting in $10 million in gross proceeds through the sale of convertible preferred stock and warrants to purchase its common stock.
Harry Palmin, president and CEO of Novelos, said: I am very pleased to be collaborating with Mundipharma and Purdue, which are innovative independent associated pharmaceutical companies with ample resources and a proven track record of developmental and commercialization expertise. This transaction will provide the remaining capital to complete our pivotal, fully-enrolled, 840-patient Phase III lung cancer trial, which is currently expected to conclude in late 2009.