On December 14, 2010 TESARO, Inc. and OPKO Health, Inc. (NYSE Amex:OPK) reported that they have signed a definitive agreement granting TESARO exclusive rights for the development, manufacture, commercialization and distribution of rolapitant and a related compound (Press release, TESARO, DEC 14, 2010, View Source [SID1234533193]). Rolapitant, a Phase III-ready, oncology supportive-care product candidate, is a potent and selective neurokinin-1 (NK-1) receptor antagonist with an extended plasma half-life that has the potential to improve the management of nausea and vomiting experienced by cancer patients undergoing treatment with emetogenic chemotherapy. Phase II clinical testing of rolapitant for the prevention of nausea and vomiting in cancer patients treated with highly emetogenic chemotherapy demonstrated promising five-day activity following the administration of a single dose.
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Under the terms of the agreement OPKO is eligible for payments of up to $121 million, including an up-front payment and additional payments based upon achievement of specified regulatory and commercialization milestones; and will receive double digit tiered-royalties on sales. TESARO and OPKO will share future profits from the commercialization of licensed products in Japan and OPKO will have an option to market the products in Latin America. In addition, OPKO will acquire a 10% equity position in TESARO.
"TESARO is very pleased to announce this agreement with OPKO and to advance the development of rolapitant, an important supportive care product candidate," said Lonnie Moulder, Chief Executive Officer of TESARO. "Having successfully commercialized the present market-leading therapy in the U.S. for CINV prevention while building MGI PHARMA, our leadership team has a deep understanding of the unmet patient needs and market dynamics that exist in this area of oncology supportive care. We believe that rolapitant may be differentiated from other agents in this class and has great potential to help cancer patients undergoing chemotherapy. In addition, this first transaction will greatly accelerate our plans to build a leading oncology-focused biopharma company."
TESARO was co-founded by former executives of MGI PHARMA, an oncology and acute-care focused biopharmaceutical company that Eisai Co., Ltd. acquired in 2008 for $3.9 billion. While at MGI PHARMA, TESARO executives led the development and commercialization of numerous oncology products, including the successful U.S. commercialization of Aloxi (palonosetron HCl), the leading product in the 5-HT3 receptor antagonist class for prevention of CINV.
"We are pleased to complete this important transaction and look forward to seeing rolapitant progress towards registration in key markets throughout the world," said Phillip Frost, M.D., OPKO’s Chairman and Chief Executive Officer. "The TESARO team’s special expertise and successful experience with the development and commercialization of oncology products will be of enormous benefit in making rolapitant a meaningful product for cancer patients and a commercial success."
"There is a continued need for unique agents to prevent nausea and vomiting associated with emetogenic chemotherapy regimens," said Steven Grunberg, M.D., Professor of Medicine and Pharmacology, University of Vermont. "The successful results of the randomized, controlled Phase II clinical trial of rolapitant in patients receiving an anticancer regimen with high potential to produce nausea and vomiting are encouraging for this potentially differentiated agent."