S*BIO Announces Collaboration with Onyx for JAK2 Inhibitors in the North American and European Markets
News Jan 16, 2009
S*BIO Pte Ltd has announced that the company has entered into a Development Collaboration, and Option & License Agreement with Onyx Pharmaceuticals, Inc. to develop and commercialize S*BIO’s novel JAK2 inhibitors, SB1518 and SB1578.
Under the terms of the agreement, S*BIO is eligible to receive up to US$550 million in combined equity purchase, option & license fees, and development and sales milestone payments. This includes an upfront payment and upfront equity purchase totalling US$25 million. S*BIO is also eligible to receive up to double digit royalties on any sales.
S*BIO will perform all the clinical development activities for SB1518 and preclinical to clinical development activities for SB1578 during the option period. Onyx can elect to exercise its exclusive options for SB1518 and SB1578 at certain predetermined stages of development for each product separately and independently.
Each option converts into an exclusive license for development and commercialization rights for SB1518 and SB1578 in all indications in the United States, Canada and Europe where Onyx will assume all of the associated development costs.
S*BIO has a co-funding option with respect to these development costs in return for enhanced royalties on any future product sales. S*BIO retains rights to develop and commercialize SB1518 and SB1578 in the rest of the world.
The development of SB1518 will initially focus on the treatment of myelofibrosis and other myeloproliferative diseases. JAK2 inhibitors are implicated across a broad range of difficult-to-treat illnesses, including cancer and autoimmune diseases.
“We are pleased to work with Onyx Pharmaceuticals and increase available resources to advance SB1518 and SB1578 rapidly through clinical development in multiple disease areas,” said Dr. Jan- Anders Karlsson, CEO of S*BIO. “We chose Onyx as a partner due to the flexibility of the deal, which retains upside to us, and our ability to participate in the clinical development and the future plans for these compounds.”