Vertex amends Mitsubishi deal up to $170M

By Mass High Tech Staff

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Small-molecule drug maker Vertex Pharmaceuticals Inc. says it will receive a $105 million upfront payment from a Japanese pharmaceutical firm in an Asian market deal for its drug to fight the hepatitis C virus.

Mitsubishi Tanabe Pharma Corp. and Cambridge-based Vertex amended a 2004 agreement for the development and commercialization of telaprevir in Japan and other countries in the Far East. Telaprevir — an HCV protease inhibitor — is currently in Phase 3 clinical trials in Japan, the United States and in Europe, according to Vertex officials.

In addition to the $105 million payment from Mitsubishi Tanabe, Vertex (Nasdaq: VRTX) will be eligible to receive further milestones upon approval and commercialization in Japan that could add up to another $65 million. The original agreement gave Mitsubishi Tanabe certain development and commercial rights to telaprevir as a potential single therapy for hepatitis C. The amendment provides a fully paid license to commercialize telaprevir as part of a combination regimen with interferon and ribavirin to treat hepatitis C in Japan and the Far East. Vertex holds on to exclusive development and commercial rights to telaprevir in North America.

Janssen Pharmaceutica, an affiliate of Johnson & Johnson, holds development and commercial rights to telaprevir in Europe, South America, Australia, and the Middle East. Earlier this month Vertex announced it was trying to sell the rights to $250 million in potential milestone payments from Janssen regarding telaprevir’s development and commercial OK in Europe.

Last month Vertex announced a pair of notes deals that brought about $143 million into the company’s coffers. For fiscal 2008, Vertex reported a loss of $459.8 million on revenue of $175.5 million.

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