Human Genome Sciences inks up to $495 million deal with FivePrime for cancer drug

Human Genome Sciences (Nasdaq: HGSI) has signed an agreement with fellow USA-based privately-held FivePrime Therapeutics to develop and commercialize FivePrime’s FP-1039 product for multiple cancers. FP-1039 is a first-in-class biologic discovered by FivePrime that targets multiple fibroblast growth factor (FGF) ligands.

Under the terms of the deal, HGS has acquired rights to FP-1039 in the USA, Canada and the European Union markets, while FivePrime retains minority co-promotion rights in the USA and full development and commercialization rights in rest of world territories, including Asia, Latin America and Russia.

In return HGS will pay FivePrime an upfront license fee of $50 million and the latter will be eligible to receive up to $445 million in future development, regulatory and commercial milestone payments. The accord also calls for tiered double-digit percentage royalty payments on net sales. At FivePrime’s request, HGS will supply FivePrime with FP-1039 for use in the rest of world territories.