OncoGenex Pharma To Regain Rights To Custirsen From Teva Pharmaceutical

(RTTNews) - Biopharmaceutical company OncoGenex Pharmaceuticals, Inc. (OGXI) said Tuesday that it has executed an initial agreement with Israel-based generic drugmaker Teva Pharmaceutical Industries Ltd. (TEVA) to regain rights to its experimental cancer drug custirsen.

This transfer of rights would occur in connection with the termination of the collaboration agreement between OncoGenex and Teva executed in 2009.

Custirsen is an investigational compound currently being evaluated in Phase 3 clinical development as a treatment for prostate and lung cancers. The drug is designed to block the production of the protein clusterin, which may play a fundamental role in cancer cell survival and treatment resistance.

Custirsen is currently in Phase 3 clinical development as a treatment in men with metastatic castrate-resistant prostate cancer and in patients with advanced, unresectable non-small cell lung cancer.

Bothell, Washington-based OncoGenex expects a final agreement to be executed in January 2015.

Under the initial agreement reached by OncoGenex and Teva, OncoGenex will receive a $27 million payment from Teva following execution of the final agreement to terminate the collaboration between the parties.

OncoGenex will also take over responsibility for all custirsen-related expenses, including those related to the ENSPIRIT trial, as well as manufacturing and regulatory activities for custirsen programs that are currently being managed by Teva.

OncoGenex said it expects the $27 million payment from Teva will enable the completion and final results from the Affinity trial, as well as continuation of the ENSPIRIT trial through the second interim futility analysis expected in the first half of 2015.

Scott Cormack, President and CEO of OncoGenex said, "Teva's strategic focus has shifted away from oncology research and development. However, OncoGenex remains committed to the continued investigation of custirsen, particularly in patients who have advancing disease despite previous treatments."

In late April, Teva and OncoGenex said that the Phase III SYNERGY trial of Custirsen in combination with First-line Docetaxel and Prednisone for Metastatic Castrate-Resistant Prostate Cancer or CRPC in men failed to meet the primary endpoint.

OGXI closed Monday's trading at $2.17, down $0.03 or 1.36 percent on a volume of 410,392 shares.

TEVA closed Monday's trading at $57.14, down $0.04 or 0.07 percent on a volume of 1.59 million shares.