Serono, Rigel Sign Pact On Aurora Kinase Inhibitors
DOW JONES NEWSWIRES
October 25, 2005 3:40 a.m.
SOUTH SAN FRANCISCO -- Rigel Pharmaceuticals Inc. (RIGL) and Serono S.A. (SRA) signed an agreement giving Serono an exclusive license to develop and commercialize product candidates from Rigel's Aurora kinase inhibitor program.
Aurora kinase is a kind of protein that is linked to cell division. Tumor cells divide quickly and that is why cancer spreads rapidly.
In a press release Tuesday, the companies said the license is worldwide, except for Japan, which Serono has an option to include at any time within the next two years.
Rigel's Aurora kinase inhibitor program includes R763, for which Rigel expects to file an investigational new drug application in December. R763 has been shown to inhibit proliferation and trigger disintegration in several tumor cell lines including cervix, colon, lung, pancreas and prostate.
Under the agreement, Rigel will receive initial payments totaling $25 million: a $10 million license fee and the purchase of $15 million of Rigel's common stock at a premium to the market price.
With additional development and sales-based milestone payments for R763, Rigel could receive up to $160 million in total, as well as royalties on any eventual product sales of R763 and other Aurora kinase inhibitors developed under the agreement.
Serono will be responsible for the further development and commercialization of R763, as well as any other product candidates arising from Rigel's Aurora kinase inhibitor program.
In 2004, Rigel posted a loss of $3.12 a share on $4.7 million in revenue.
-By Will Daley, Dow Jones Newswires; 201-938-5400 |
