Teva reached a licensing agreement this week with Mersana Therapeutics for the development of its XMT-1107 molecule (a novel anti-angiogenic fumagillin analog conjugated to Mersana's Fleximer). See full report at Seeking Alpha. The deal helps Teva diversify from its generic portfolio. Like most deals these days, Mersana will be compensated up to $334 M based on achievments of milestones, and is also eliglible for royalites.
Mersana will begin phase I work with XMT-1107 next quarter. Teva continues its move to oncology with this second licensing deal in the past few months, and cut another deal for OncoGenex's late stage OGX-011 (custirsen sodium) this past December. This drug is aimed at treatment of prostate, non-small cell lung cancer, and breast cancer. Clearly Teva is attempting to capitalize on the potentially lucrative growth predicted with cancer therapeutics - and to diversify from its lower margin generics.
Posted by Bruce Lehr April 16th 2010.