AVEO to get $25m in milestone payments
OSI Pharmaceuticals Inc. will pay AVEO Pharmaceuticals Inc. of Cambridge $25 million in milestone payments under a 2009 agreement that provided OSI with the right to internalize certain elements of AVEO's proprietary technology platform, the two companies said.
In a press release, the companies today announced that OSI has exercised its option under that agreement.
As part of that agreement, OSI will pay AVEO $25 million in license expansion fees; $12.5 million was paid upon delivery of the notice of option exercise, and $12.5 million will be paid following the successful transfer of the applicable technology from AVEO to OSI, the press release said. The transfer is expected to be completed in July 2011.
"This milestone further demonstrates the unique insights and value AVEO's novel cancer biology platform brings to cancer drug development," Tuan Ha-Ngoc, AVEO Pharmaceuticals president and chief executive, said in a statement. "We believe our proprietary platform has enabled AVEO to build a unique profile in the biotech sector, and we will continue to leverage our platform both in support of select strategic partnerships and to further develop our internal pipeline. With our two lead product candidates advancing in clinical development and a strong vision for the future, we are well positioned to execute on our strategy of becoming a fully integrated cancer therapeutics company."