Aveo gets $7.5m payment from Schering-Plough

Aveo Pharmaceuticals Inc. will receive a $7.5 million upfront payment as part of an exclusive worldwide agreement with drug giant Schering-Plough Corp. to develop potential cancer treatments.

Aveo, a Cambridge biopharmaceutical company focused on the discovery and development of cancer medications, said it will work with Schering-Plough of New Jersey to develop and commercialize AV-299, an antibody discovered by Aveo that Aveo believes has the potential to be a "breakthrough cancer medicine."

Besides an upfront payment, Schering-Plough will make a $10-million equity investment in Aveo.

Under a best-case scenario for successfully commercializing AV-299, milestone payments to Aveo could exceed $460 million over the years, Aveo said.

"AV-299 has the potential to be a breakthrough cancer medicine," Aveo chief executive Tuan Ha-Ngoc said in a statement, adding, "Aveo sought a strategic partner early to maximize the breadth and depth of AV-299's development program."
(By Chris Reidy, Globe staff)