ArQule, Daiichi Sankyo deal

The partners signed a letter of intent to grant Daiichi exclusive, worldwide rights to co-develop and market ArQule's ARQ 197 to treat cancer, except in previously licensed Asian countries. ArQule will receive $60 million up front and is eligible for up to $560 million in milestones plus tiered, double-digit royalties. The small molecule inhibitor of c-Met receptor tyrosine kinase is in Phase II testing to treat microphthalmia transcription factor tumors (MiT), non-small cell lung cancer (NSCLC) and pancreatic cancer. The partners will equally share the costs of Phase II and III trials, including costs from ongoing trials incurred after the effective date of the deal. ArQule's share of the Phase III costs will be deducted from milestones and, if necessary, royalty payments. ArQule has an option to co-market ARQ 197 in the U.S. Kyowa Hakko Kirin Co. Ltd. (Tokyo:4151, Tokyo, Japan) has rights in Japan, China, South Korea and Taiwan. ...