In this transaction, ArQule and Daiichi Sankyo (DS) agreed to co-develop ARQ 197, ArQule’s selective c-Met inhibitor, for the treatment and prevention human cancer indications and any other indications as agreed by the parties, in the United States, Europe, South America, and the rest of the world, but excluding Japan, China (including Hong Kong), South Korea, and Taiwan because ArQule had previously granted exclusive rights to Kyowa Hakko Kirin Co., Ltd. in those countries. ArQule and DS also entered into a separate Collaborative Research, Development and License Agreement dated November 7, 2008 utilizing ArQule’s kinase inhibitory discovery platform to develop a new generation of highly selective, anti-cancer kinase inhibitors. In this white paper, we focus on the ARQ 197 License, Co- Development and Co-Commercialization Agreement.
Under the agreement, DS paid ArQule an upfront cash fee of $60 million and agreed to pay up to $560 million in development and sales milestones and tiered double- digit royalties on net sales of ARQ 197 by DS, its affiliates, and sublicensees. ArQule and DS are required to equally share the costs of Phase II and Phase III clinical studies, with ArQule’s share of Phase III costs payable solely from milestone and royalty payments. DS is required to fund the costs of commercialization, and ArQule has an option to participate in the commercialization of ARQ 197 in the United States.
Read the entire white paper by clicking on the link below.