AVEO Oncology gives back tivozanib non-cancer rights

The USA’s AVEO Oncology (Nasdaq: AVEO) saw its shares climb 19.9% to $0.74 by mid-morning, after an announcement that a 2006 license agreement with Kyowa Kirin (TYO: 4151) had been amended to allow the latter to buy back the non-oncology rights of tivozanib (trade name Fotivda) in AVEO territories, which includes the USA and European Union. For its part, the Japanese company’ shares edged up 1.1% to 1,832 yen by close of trading in Tokyo.

As per the amendment, Kyowa Kirin will pay an upfront of $25 million and will also waive AVEO Pharmaceutical’s obligation to make an $18 million milestone payment on gaining US marketing approval as well as up to $391 million in potential milestone payments surrounding certain development and commercial milestones in non-oncology indications. Kyowa Kirin has also agreed to make tiered royalty payments on the net sales of tivozanib in non-oncology indications. These royalties will start at high single-digit and end at low double-digit percentages.

“This is a strategically important agreement for us to maximize the value of tivozanib by keeping it in oncology development by AVEO and having it back to our pipeline in non-oncology areas,” said Takeyoshi Yamashita, executive officer, director of Corporate Strategy & Planning Department of Kyowa Kirin, “This amended agreement on tivozanib is consistent with our portfolio strategy and we’ll keep working to prove its possibility.”