Dive Brief:
- ArQule Inc. said Tuesday it will out-license its fibroblast growth factor receptor inhibitor derazantinib to Basilea Pharmaceutica International Ltd. for $10 million upfront and as much as $326 million in milestone payments down the road.
- Per the deal, Basilea will gain development and commercialization rights for the U.S., EU, Japan and rest of world, excluding China, Hong Kong, Macau and Taiwan — where Sinovant Sciences Ltd. has the rights already.
- If derazantinib ever reaches markets, ArQule would be eligible to staggered royalties ranging from single digits to double digits. Basilea will handle all costs, but ArQule could have have the opportunity to promote the drug in the U.S. in some cases.
Dive Insight:
ArQule had already pushed derazantinib into a registrational trial for a form of biliary tract cancer known as intrahepatic cholangiocarcinoma (iCCA). Basilea plans to continue the study following the deal.
"Derazantinib is an ideal match for our existing clinical oncology portfolio," said Basilea CEO Ronald Scott in an April 17 statement.
The deal hands Basilea a third clinical asset to round out its pipeline, adding to two earlier cancer candidates — a Phase 1/2 asset for glioblastoma and other solid tumors, as well as an early-stage asset in development for solid tumors.
Basilea, a Swiss company, also owns marketed products, including the antibiotic Zevtera (ceftobiprole) and the antifugal Cresemba (isavuconazole). Last year, Basilea sold off European commercialization rights for Cresemba to Pfizer Inc.
For ArQule, this is one of the first steps in rebuilding after the failure of its lead candidate tivantinib last year. Although the drug was a key focus for a number of years, management said at the time that the company's priority would shift toward pipeline opportunities.