The changes introduced by Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) in the focus of diseases to be treated has led to an end to the collaboration with Canadian company OncoGenex Pharmaceuticals Inc. (Nasdaq: OGXI). Consequently, Teva will pay OncoGenex $27 million compensation and the rights to the drug now return fully to the Canadian pharmaceutical company.
The agreement with OncoGenex was signed five years ago when Shlomo Yanai was Teva's CEO. OncoGenex is developing custirsen, an investigational compound currently being evaluated in Phase III clinical development as a treatment for prostate and lung cancers. Teva has invested $60 million to date in the drug and in the original agreement had an option to invest up to another $370 million in developing the treatment. The investment included $10 million in OncoGenex shares at a significantly higher price than the share price today.
OncoGenex president and CEO Scott Cormack said, "Teva's strategic focus has shifted away from oncology research and development. However, OncoGenex remains committed to the continued investigation of custirsen, particularly in patients who have advancing disease despite previous treatments."
OncoGenex said that a final agreement will be executed in January 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2014
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