AVEO Pharmaceuticals, Inc. AVEO announced that it has entered into an exclusive license agreement granting EUSA Pharma rights to tivozanib for the treatment of advanced renal cell carcinoma (RCC) in Europe. The agreement also covers a number of territories including South America and South Africa, except North America and additional potential indications.
As per the terms of the agreement, AVEO will receive an upfront research and development funding payment of $2.5 million and could receive potential milestone payments up to $394 million on the achievement of specified development, regulatory and commercialization targets. The company will also receive tiered royalty ranging from low double digits to mid-twenty percent on net sales of tivozanib in the agreement’s territories. Under the terms of the agreement, within the specified territories, EUSA Pharma will undertake and fund future regulatory and commercial activities to bring tivozanib to market and commercialize the drug.
EUSA Pharma plans to submit a marketing authorization application to the European Medicines Agency for tivozanib as a first-line treatment for advanced RCC in the first quarter of 2016.
Apart from EUSA Pharma, AVEO has agreements with Ophthotech and Pharmstandard for tivozanib. AVEO inked an exclusive license agreement with Pharmstandard for the development, manufacturing and commercialization of tivozanib in Russia, Ukraine and the Commonwealth of Independent States, for all indications except non-oncology ocular conditions. In Nov 2014, AVEO entered into a research and exclusive option agreement with Ophthotech Corporation, granting the latter an option to develop and commercialize tivozanib for the potential diagnosis, prevention and treatment of non-oncologic diseases or conditions of the eye. Ophthotech paid AVEO $500,000 in consideration of the grant of the option. Such deals provide AVEO with much needed funds to advance its candidates, as it does not have any approved product in its kitty yet.
AVEO currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Achillion Pharmaceuticals, Inc. ACHN, Horizon Pharma plc HZNP and Corcept Therapeutics Incorporated CORT, all sporting a Zacks Rank #1 (Strong Buy).
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