Sponsored by
Associated Press
NeoPharm Licenses Drug Candidate in Japan
01.04.2005, 12:01 PM
NeoPharm Inc. said Tuesday that it licensed Japanese development rights to its lead drug candidate, a brain tumor treatment called IL13-PE38QQR, to a Japanese pharmaceutical company for $2 million plus later payments tied to development benchmarks and royalties that could total $14 million.
The drug, generically known as cintredekin besudotox, treats tumors by targeting a receptor that is only found on tumor cells, not on healthy cells.
Japanese drug maker Nippon Kayaku Co. will be responsible for all development costs in Japan. NeoPharm said it will receive an additional $2 million when approval is sought in Japan, and a $4 million payment if the drug is published in the Japanese government's pricing guide, as well royalties and milestone payments.
Gregory P. Young, NeoPharm's president and chief executive said he expects licensing to play a key role in the company going forward.
Shares of NeoPharm rose 23 cents, or 1.9 percent to $12.40 in morning trading on the Nasdaq.