Clavis Pharma and Clovis Oncology sign new $205 million deal for pancreatic cancer drug in Asia and rest of world

Norwegian cancer drug developer Clavis Pharma (OSE: CLAVIS) and closely-held USA-based Clovis Oncology have entered into a new agreement for the further development and commercialization of CP-4126 (also known as CO-101), which is currently in Phase II development in pancreatic cancer, to Asian and rest of the world countries.

Under the terms of the new deal, Clavis will receive an upfront cash payment of $10 million from Clovis for the expansion of the agreement to include global rights and will be eligible to receive further payments totalling $30 million for the successful attainment of development and regulatory milestones in Asia and up to $165 million in sales milestones. This is in addition to the upfront and milestone payments already agreed to in the original license agreement. Clavis will receive tiered double-digit royalties on all product sales globally.

This new deal expands the existing agreement between Clavis and Clovis for the development and commercialization of CP-4126 in the Americas and Europe, which was signed in November 2009 (up to $380 million in milestone payments plus royalties on sales).