Onyx and Bayer settle claims over cancer drug
Leverkusen/San Francisco - Bayer HealthCare and Onyx Pharmaceuticals will not to court over Nevaxar. The two companies reached an agreement related to regorafenib, a late-stage oncology compound. Regorafenib is an oral multikinase inhibitor of angiogenic, stromal and oncogenic receptor tyrosine kinases (TK) currently being investigated in clinical trials for its potential to treat patients with various tumor types.
Under the terms of the agreements, regorafenib is a Bayer compound, and Bayer will have the final decision-making authority for global development and commercialisation. Onyx will receive a royalty on any future global net sales of regorafenib in oncology. In addition, Bayer will contract the Onyx sales force to promote regorafenib, along with Bayer sales representatives, in the United States. Bayer will purchase Onyx's royalty rights for sales of the product in Japan in exchange for a one-time payment to Onyx. Bayer will have no obligation to pay Nexavar royalties to Onyx on Japanese sales after December 31, 2011. Further, in the event of a change of control or acquisition of Onyx, the current profit-sharing, co-development and U.S. co-promotion of Nexavar will be preserved. "Together we are taking our collaboration to the next level by more effectively structuring our future working relationship", said N. Anthony Coles, CEO of Onyx Pharmaceuticals.
Onyx had sued Bayer in an U.S. district court over the rights for the compound.