Merck & Co returns rights to HGF antibody candidate to AVEO Pharma and Caeylx to Johnson & Johnson

As part of its R&D pipeline portfolio review since it acquired fellow USA-based Schering-Plough last year, US drug giant Merck & Co (NYSE: MRK) has returned rights to an investigation cancer drug to its originator and those to an already marketed product to a unit of Johnson & Johnson (NYSE: JNJ) as a licensing deal expires.

US cancer drug developer AVEO Pharmaceuticals (Nasdaq: AVEO) says it has regained worldwide rights from Merck - through its 2007 deal with subsidiary Schering Corp - to develop and commercialize AV-299 (also known as SCH 900105), its anti-hepatocyte growth factor (HGF) antibody candidate.

AV-299 is a potent, functional anti-HGF antibody that was discovered by AVEO through its Human Response Platform(TM). Data from Phase I clinical trials of AV-299 indicate a favorable tolerability profile and good combinability with EGFR inhibitors, erlotinib (Roche’s Tarceva) and gefitinib (AstraZeneca’s Iressa). In June 2010, AVEO initiated a Phase II clinical trial evaluating AV-299 in combination with gefitinib versus gefitinib monotherapy in patients with non-small cell lung cancer (NSCLC). In conjunction with the Phase II trial initiation, AVEO received an $8.5 million milestone payment from Merck under the terms of the license agreement. Top-line efficacy data from the AV-299 Phase 2 trial are expected in late 2011.