Genentech enters $111 million drug discovery pact with RQx Pharma

California, USA-based privately-held RQx Pharmaceuticals said yesterday that it has entered into a drug discovery collaboration with Swiss drug major Roche’s (ROG: SIX) biotech subsidiary Genentech for the discovery and development of novel drug compounds for an undisclosed target.

Under the terms of the agreement, RQx will receive an up-front payment and is eligible to receive R&D milestone payments totaling $111 million. In addition, RQx is eligible to receive royalties on sales of products resulting from the collaboration.

"We have made tremendous progress at RQx since the company's founding two years ago, and we are pleased to be moving forward in partnership with Genentech to bring new drugs to market," said Court Turner, chief executive of RQx and venture partner at Avalon Ventures.