With a lead drug for kidney cancer being readied for late-stage clinical trials, Aveo Pharmaceuticals garnered $20 million for expanding its research collaboration with OSI. Aveo gets $5 million upfront and $15 million in an equity investment from OSI, which in turn gets to use Aveo's special mouse model for human cancer. Aveo also gets undisclosed research funds and a shot at gaining royalties and milestones on any new products that are created in the pact.
As Xconomy notes, Cambridge, MA-based Aveo has been on a roll recently, advancing its clinical work as it focuses on partnerships to gin the money it needs. Aveo's mouse models hold considerable promise for identifying biomarkers that can be used to find the people most likely to benefit from a new cancer drug. "Our initial collaboration with Aveo has convinced us that these platforms represent a valuable and integral component in our ongoing efforts," said Colin Goddard, OSI Pharmaceuticals' CEO, in a statement.
"We're trying to build a sustainable biotech company," Elan Ezickson, Aveo's chief business officer, tells Xconomy's Luke Timmerman. "We're fortunate in this financial environment to bring in resources without giving up rights to develop our own drugs."
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