Briefs: Roche deal with Chiasma; Vasella payout; FDA priority review for dolutegravir

Swiss drug major Roche (ROG: SIX) has entered into an agreement to develop and commercialize privately held US biopharma company Chiasma’s Octreolin (octreotide acetate) for acromegaly. Under the deal, Roche will receive worldwide exclusive license to Octreolin and will assume responsibility for the commercialization of the product. Chiasma will continue development through completion of the pivotal Phase III trial for acromegaly.

The deal includes an upfront payment of $65 million to Chiasma, plus future consideration of up to $530 million in development and commercial milestones, as well as tiered, double-digit royalties on Octreolin net sales.

"If approved, Octreolin would be an important alternative for patients with acromegaly, a disorder that develops when a person's pituitary gland produces too much growth hormone," says Roche chief medical officer Hal Barron.