Ono Pharma buys Japanese rights to two cancer drugs in $340 million deal with Onyx

California, USA-based drugmaker Onyx Pharmaceuticals (Nasdaq:ONXX) has entered into an exclusive agreement with Ono Pharmaceutical (TYO: 4528) to develop and commercialize two cancer compounds from Onyx's proteasome inhibitor development program ' carfilzomib with potential in multiple melanoms and ONX 0912 - for a total consideration of nearly $340 million.

Under the terms of the agreement, Ono gains exclusive rights to develop and commercialize both compounds for all oncology indications in Japan, while Onyx retains commercialization rights in other countries in the Asia Pacific region, as well as in all other regions of the world, including the USA and Europe.

Ono will pay Onyx an upfront payment of 5 billion yen ($59.3 million). In addition, Onyx will receive development and sales-based payments related to the compounds that could total up to around $280 million at current exchange rates. The accord also calls for royalty payments in double-digit percentages on net sales in Japan, commensurate with a late-stage asset.