Oncolys BioPharma licenses cancer drug to Chugai Pharmaceutical
TAIPEI, NNA – Japanese cancer drugmaker Oncolys BioPharma Inc. has granted exclusive rights to Chugai Pharmaceutical Co. to make and sell an oncolytic viral immunotherapy treatment being developed by Oncolys.
The total value of the license to be paid by Tokyo-based Chugai will be over 50 billion yen ($453 million), Oncolys said in a statement on Monday.
The cancer treatment, Telomelysin (OBP-301), has been developed in collaboration with Medigen Biotechnology Corp. of Taiwan, Oncolys said.
It is currently undergoing clinical trials in the United States and Japan for treating esophageal cancer, and in Taiwan and South Korea for liver cancer, according to Medigen’s website.
The scope of the exclusive licensing includes granting Chugai sub-licensing rights concerning the development, manufacturing, and marketing of Telomelysin in Japan and Taiwan.
Chugai, which is 60 percent owned by Swiss healthcare company Roche Holding AG, can also exercise an exclusive option on the worldwide development, manufacture, and marketing of Telomelysin, excluding Taiwan, Japan, China, Hong Kong and Macau, Oncolys said in the statement.
Oncolys will receive an upfront payment of 550 million yen from Chugai, and will be paid royalties after the drug goes on sale, according to the statement.
Medigen is entitled to one-third of the royalty based on the terms of its partnership with Oncolys, according to Medigen’s website.
Chugai will buy 800 million yen of newly issued Oncolys common stock, with payment planned for April 24, the date the licensing agreement takes effect, according to the statement. Chugai is already an Oncolys shareholder.