Molecular Insight Signs Agreement With BioMedica

Published: 02-Sep-2009

To sub-license Onalta brand 90-Y edotreotide radiotherapeutic in Europe, the Middle East, North Africa, Russia and Turkey

Molecular Insight has entered into an agreement to sub-license its Onalta brand 90-Y edotreotide radiotherapeutic in certain countries in Europe, the Middle East, North Africa, Russia and Turkey to BioMedica Life Sciences (BioMedica).

Onalta is a novel radiotherapeutic product candidate under development for the treatment of metastatic carcinoid and pancreatic neuroendocrine tumors in patients whose symptoms are not controlled by conventional therapy.

Molecular Insight licensed the rights to edotreotide from Novartis. The agreement provides BioMedica an exclusive sub-license to intellectual property rights and know-how of Molecular Insight and Novartis with respect to Onalta.

Under the agreement, BioMedica is expected to perform clinical studies and market, distribute and commercialise Onalta in the specified territories and secure all regulatory approvals.

Additionally, BioMedica will purchase finished product, including compassionate use and clinical trial supplies exclusively from Molecular Insight for a five-year period, with a five-year renewal option.

Reportedly, Molecular Insight continues to retain all rights to all other markets and territories, including the US, Japan and Asia.

Moreover, Molecular Insight will receive an initial, nonrefundable payment of $4.4m and will be eligible to receive additional regulatory milestone payments.

Molecular Insight will also receive more than $10m in total regulatory milestone and upfront payments, net of license payments. Molecular Insight is eligible to receive milestone and tiered royalties on Onalta sales.

Daniel Peters, president and CEO at Molecular Insight, said: This agreement will advance an innovative therapy for inoperable neuroendocrine tumors into pivotal trials. This agreement is value creating for Molecular Insight and BioMedica in that it provides both companies near-term revenue generated from compassionate use in Europe and long-term value from revenues resulting from the approved product.

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