Norway's Clavis Pharma has reason to celebrate this morning. The developer has inked a $380 million deal with US-based Clovis Oncology, sending shares up as much as 60 percent, according to Reuters. Clavis will get $15 million up front for CP-4126, a pancreatic cancer drug currently in Phase II trials. The remaining $365 million payout will come in stages and if the drug is approved, Clavis will receive tiered double-digit royalties on sales.
Clovis will take over all development of CP-4126 and will be responsible for commercializing the drug in the U.S., Europe, Canada, Central and South America. Clavis retains an option to co-promote and share profits in Europe. Additionally, the two drugmakers will work together to develop a companion diagnostic test to identify patients most likely to benefit from CP-4126.
Clovis, a 2009 Fierce 15 winner, raised a whopping $145 million in venture capital earlier this year. Its management team has been looking for drug developers willing to trade their promising oncology program for a chunk of money.
"We view this agreement as an important validation of Clavis Pharma's potential to generate multiple novel cancer drugs with enhanced performance over existing therapeutics," said Clavis CEO Geir Christian Melen. "This strategic partnership for CP-4126, our second product under development, will enable us to focus resources on developing our portfolio further and provides great momentum towards our building a successful oncology business."
- see Clavis' release
- here's the Reuters report