Tuesday, September 23, 2008

Aveo study triggers $3M milestone

By Mass High Tech Staff

Aveo Pharmaceuticals Inc. has begun a Phase 1 safety study with the company’s investigative anti-cancer tumor drug SCH900105 (AV-299). The trial is being developed in partnership with drug giant Schering-Plough Corp. (NYSE: SGP). Schering-Plough is obligated, under the terms of their agreement, to pay Cambridge-based Aveo a $3 million milestone payment for beginning human studies with the drug.

The two drug developers entered into the exclusive licensing agreement in April 2007. At that time Aveo received $7.5 million upfront payment and a $10 million equity investment from Schering-Plough.

The drug is an antibody to hepatocyte growth factor (HGF), a binder to tyrosine kinase. The antibody — which has the ability to interfere with tumor cell maintenance — is administered intravenously in patients with relapsed or refractory solid tumors or lymphoma. The cMET/HGF pathway is one of the most promising in cancer research, said Tuan Ha-Ngoc, Aveo’s CEO.

Under term of the Schering-Plough deal, Aveo will be developing the drug in the clinic up until it establishes its proof-of-concept in humans. AVEO has the option to co-promote AV-299 in the United States for specific cancers and would receive royalities payments from the sale of the drug worldwide.

Aveo was founded in 2002 as GenPath Pharmaceuticals Inc. The company, which has raised more than $100 million in venture funding, is focused on the discovery and development of targeted treatments for cancer. In May, company officials reported that Aveo has completed enrollment in a Phase 2 clinical trial of a drug to treat patients with metastatic renal cell carcinoma (mRCC).