Here's a nice one for MOGN. i.e. - We'll munch you at a set price only if you have a successful drug within a couple years or so.
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4:01PM MGI Pharma signs agreement for rights to novel treatment for Thrombocytopenia (MOGN) 24.05 -0.25 : Co announces it has entered into agreements with AkaRx, for AKR-501, a novel, orally-available, small molecule thrombopoietin mimetic being developed for the treatment of thrombocytopenia. Under the terms of the agreements, MOGN has obtained the rights to develop AKR-501, and an option to acquire AkaRx, at MOGN's sole discretion, at any time up to Jan 8, 2010. Lonnie Moulder, President and CEO of MOGN said, "...AKR-501 provides MGI PHARMA with a tremendous opportunity for sustained revenue growth in future years, with U.S. peak revenue potential exceeding $1 billion..." Under the terms of the transaction with AkaRx, MOGN expects to make upfront aggregate payments of up to $45 mln to obtain the license rights and the options to acquire all of AkaRx's capital stock from AkaRx shareholders at any time prior to Jan 8, 2010. period. There are no additional milestone payments, and, if AKR-501 is commercialized, no future royalty payments associated with the agreements. If MOGN elects to exercise its option to acquire all of AkaRx's capital stock, the co would make additional payments of approx $255 mln at that time. As part of the agreements with AkaRx, MOGN also obtained rights to AKR-201, a metabolite of thyroid hormone targeting thyroid cancer. AKR-201 is in pre-clinical development and has received an orphan drug designation from the FDA. The co now expects R&D expenses for the YE07 to be approx $73 mln. For YE08, the co is now providing adjusted R&D expense guidance of approx $85 mln. For the YE07, the co is maintaining its previous guidance of Dacogen sales of approx $115 mln. |
