VS-4718 is an oral compound that is designed to target cancer stem cells via the potent inhibition of focal adhesion kinase (FAK).
The company said that cancer stem cells are an underlying cause of tumor resistance to chemotherapy, recurrence and ultimate disease progression.
Under the deal, Verastem has secured the existing and future developmental, regulatory and commercial royalty milestones and payments related with the development and potential future sales of VS-4718 due to Poniard Pharmaceuticals.
Additionally, Verastem is now the direct licensee of VS-4718 from The Scripps Research Institute with a potential obligation of about $3m in developmental and regulatory milestones as well as a low single digit royalty on potential future sales.
Verastem president and chief executive officer Robert Forrester said controlling ownership of the company’s products is key to value creation.
"We believe that targeting the FAK pathway has the potential to decrease the cancer stem cell burden in a tumor and lead to improved patient outcomes," Forrester said.
"As we pursue clinical development and possible commercialization, we want to make sure that we maximize our flexibility for the future and retain the potential for a significant return on the development investment we are making for our shareholders."
Currently, VS-4718 is in a Phase I clinical trial in patients with advanced solid tumors, and is designed to determine the biologically active dose and the maximum tolerated dose.
The company said that additional patients may be enrolled to evaluate safety, tolerability and to assess initial signs of activity.