Chugai enters commercialization agreement for PM1183

Spanish drugmaker PharmaMar (PHM: MC) has signed an exclusive license, development and commercialization agreement with Chugai Pharmaceutical (TSE:4519) for its third marine-derived anticancer drug PM1183 (lurbinectedin) in Japan. The news sent PharmaMar’s shares up 10% to 2.87 euros.

Under the terms of this agreement, PharmaMar will receive an upfront payment of 30 million euros ($31.3 million), along with double-digit tiered royalties, and will also be eligible for receiving payments in line with the progress of the development and sales milestones; potentially worth over 100 million euros.

PharmaMar will continue to conduct the clinical development activities for the first two indications of PM1183 (platinum-resistant ovarian cancer and small cell lung cancer) in Japan, whereas Chugai, which is majority-owned by Swiss pharma giant Roche (ROG: SIX), will make milestone payments at study initiation and will be responsible for registration filing. In addition, Chugai will have the rights to conduct clinical development in Japan to pursue additional indications and may contribute to the global development. PharmaMar will retain the exclusive production rights of lurbinectedin and will supply the active pharmaceutical ingredient (API) to Chugai.