Novartis licenses rights for tumor drug to Cambridge firm

Swiss drug giant Novartis Pharma AG licensed rights for a potential orphan-drug treatment for certain types of tumors to Molecular Insight Pharmaceuticals Inc.

Molecular Insight, a Cambridge biopharmaceutical company, said today it has agreed to pay Novartis a licensing fee of an undisclosed amount, additional unspecified milestone payments, and possible royalty payments to develop and sell Onalta.

Molecular Insight said it plans to develop Onalta as a treatment for metastatic pancreatic neuroendocrine and carcinoid tumors in patients whose symptoms are not controlled by some other types of therapies.

Onalta has been designated as an "orphan drug" by the Food and Drug Administration, the company said.

The Orhpan Drug Act rewards companies that develop drugs for rare diseases by giving them seven years to sell each new treatment without competition from other drug makers.
(By Chris Reidy, Globe staff)