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Biotech / Medical : Synta Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: mopgcw who wrote (57)	12/30/2008 11:26:08 AM
From: Steve Lokness	Read Replies (1) \| Respond to of 112

Well Roche has some confidence - although the headline is a bit much. Still 25 million is 25 million! NEW YORK (AP) -- Biotechnology company Synta Pharmaceuticals Corp. could receive more than $1 billion in payments from Roche under a drug development partnership, the company said Tuesday in a Securities and Exchange Commission filing. Under the deal, Lexington, Mass.-based Synta will conduct research on compounds that could become treatments for inflammatory diseases. Switzerland-based Roche will fund the research for an initial two-year period and receive worldwide rights to develop and sell three products. In return, Synta receives $25 million in upfront license fees and is eligible to receive $245 million in development milestones for the first product, and up to $122.5 million each for the second and third products. Synta is also eligible for sales milestone payments up to $170 million for each of the three products. Synta will receive tiered royalties on all product sales and retains the right, in indications other than rheumatoid arthritis, to co-develop and co-promote in the U.S. at Roche's expense. Shares of Synta rose 22 cents, or 4.3 percent, to $5.40 in morning trading. The stock has traded between $4.29 and $10.30 over the last 52 weeks