Date: 2017-01-03
Type of information: Development agreement
Compound: arhalofenate
Company: Cymabay Therapeutics (USA - CA) Kowa Pharmaceuticals (Japan)
Therapeutic area: Inflammatory diseases
Type agreement: development licensing commercialisation
Action mechanism: antiinflammatory agent. Arhalofenate is an anti-inflammatory uricosuric drug that reduces the risk of gout flares while also lowering uric acid.
Disease: gout
Details: * On January 3, 2017, CymaBay Therapeutics announced that it has entered into an exclusive license agreement with Kowa Pharmaceuticals America, Inc. for the development and commercialization of arhalofenate in the United States (U.S.). CymaBay had earlier reached agreement with the FDA on the size and scope of the Phase 3 program which is estimated to cost $100 million. CymaBay retains full development and commercialization rights for the rest of the world. Locust Walk served as a transaction advisor to CymaBay.
Financial terms: Under the terms of the agreement, CymaBay will receive up to $15 million in upfront and near-term milestone payments and is eligible to receive up to an additional $190 million in payments based upon the achievement of specific development, regulatory and sales milestones. CymaBay is also eligible to receive tiered, double digit royalties on future sales of arhalofenate products. Kowa will be responsible for all development and commercialization costs.
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