Hanmi Pharma set to earn up to $910 million under deal with Genentech, but Boehringer accord terminated

South Korea’s Hanmi Pharmaceutical (128940: KS) has entered into an exclusive development and license agreement with Genentech, a subsidiary of Swiss pharma giant Roche (ROG: SIX), for the development and commercialization of Hanmi’s pan-RAF inhibitor, HM95573, which is currently in Phase I clinical development.

Under the terms of the accord, Genentech will obtain exclusive worldwide rights, except South Korea, to develop and commercialize HM95573. Hanmi will receive an initial upfront payment of $80 million and is eligible to receive payments based on achievement of certain predetermined development, regulatory and commercialization milestones totaling up to $830 million. In addition, Hanmi is eligible to receive tiered double digit royalties on sales of certain products resulting from the license agreement. Full financial terms have not been disclosed.

The completion of this agreement is subject to US customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, which is expected to occur during the fourth quarter of 2016.