Octreolin is the new oral regimen of a somatostatin analog, the peptide octreotide, available only by injection.
Chiasma chairman and chief executive officer Fredric Price said, "We are especially pleased to have entered into this agreement with Roche, an ideal collaboration partner that has the right development and commercial resources in the areas of endocrinology and oncology to support Octreolin."
According to the deal, Roche has exclusive global license to Octreolin and is responsible for the commercialization of the product. Genentech will look after the commercialization activities in the US.
Chiasma will continue development of Octreolin through the ongoing Phase 3 study for acromegaly.
Roche product development global head and chief medical officer Hal Barron said, "If approved, Octreolin would be an important alternative for patients with acromegaly, a disorder that develops when a person’s pituitary gland produces too much growth hormone."
Chiasma will earn $65m upfront payment and is eligible for up to $530m in development and commercial milestones in addition to sales-based double-digit royalties.
Evercore Partners acted as the financial advisor and Latham & Watkins LLP was Chiasma’s legal counsel on the transaction.