Baxalta pulls out of potential $565 million deal with Onconova

7 March 2016

US biotech firm Onconova Therapeutics (Nasdaq: ONTX) says that partner Baxalta (NYSE: BXLT) has decided to terminate its development and license agreement for rigosertib, Onconova’s lead development candidate, with the news sending the latter’s share tumbling 13.4% to $0.40 on Friday.

The accord, signed with Baxter International from which Baxalta was spun out in 2015, was worth a potential $565 million to Onconova (The Pharma Letter September 20, 2012), but trials with rigosertib have been disappointing. Baxalta is the subject of an agreed $32 billion takeover by Ireland-base Shire (LSE: SHP).

Onconova, following prior consultation with Baxalta, began enrolling the first of around 225 patients in December 2015 for the INSPIRE trial for IV rigosertib as a treatment for higher-risk myelodysplastic syndromes (HR-MDS) after failure of hypomethylating agent (HMA) therapy.

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