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Print Edition StoriesTuesday, July 21, 2009
Aveo to earn $20M from expanded R&D alliance with OSI
By Mass High Tech staff
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Cancer-focused biotech company Aveo Pharmaceuticals Inc. and OSI Pharmaceuticals Inc., a developer of treatment for cancer, diabetes and obesity, have expanded their discovery and research collaboration established in October of 2007.
The expanded deal calls for OSI to pay $20 million to Aveo at closing, including $5 million in upfront cash and $15 million in an Aveo equity purchase. For the next two years, Aveo will receive research funding from ISO, which will hold the rights to Aveo’s tumor target developments, namely epithelial-mesenchymal transition. OSI is also granted non-exclusive access to its collaborating partner’s bioinformatics platform, and it has the option to use elements of Aveo’s platform, including the Human Response Platform. Aveo maintains eligibility to earn milestone payments and royalties.
The 2007 alliance noted that the partnership between the Cambridge biotech and Melville, N.Y.-based OSI Pharmaceuticals was formed to identify small molecule treatments to target mechanisms involved in the growth of tumors. At the time, OSI agreed to pay Aveo $10 million upfront and make a $5 million equity investment in the company.
In March, Aveo announced a collaboration with Cambridge biotech giant Biogen Idec Inc. to develop cancer treatment drugs around Aveo’s ErbB3-targeted antibodies.
Aveo has also collaborated with Eli Lilly, Merck and Schering-Plough.
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