Baxter in up to $565 million deal with Onconova for rigosertib

US companies Baxter International (NYSE: BAX) and privately-held biotech Onconova Therapeutics have entered into a European licensing agreement for rigosertib, a novel targeted anti-cancer compound currently in Phase III development for the treatment of a group of rare hematologic cancers, ie, myelodysplastic syndromes (MDS) and in a Phase II/III study for pancreatic cancer.

Under the terms of the accord, Baxter will gain commercialization rights in the European Union and other countries in Europe, in return for an upfront payment of $50 million, which will be recorded as a special pre-tax in-process R&D charge in the third quarter of 2012. In addition, Onconova may receive up to $515 million in pre-commercial development and regulatory milestones for the MDS and pancreatic cancer indications, in addition to sales milestones and royalties. Baxter has the option to participate in the development and commercialization of rigosertib in additional indications. Baxter has an existing equity investment with Onconova of $50 million.

Builds on Baxter’s oncology programs