Tesaro, Janssen Partner for Prostate Cancer Drug
Tesaro Inc. an oncology-focused biopharmaceutical company, and Janssen Biotech Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson, have formed a global collaboration and license agreement focused on the development and commercialization of niraparib specifically for the treatment of prostate cancer. Niraparib is an oral, once daily, potent, and highly selective PARP inhibitor that is currently being evaluated in Phase III clinical trials for ovarian and breast cancer.
Under the terms of the agreement, Janssen will develop and commercialize niraparib for patients with prostate cancer worldwide, except in Japan. Tesaro will receive an upfront payment of $35 million and is eligible to receive additional milestone payments of up to $415 million, contingent upon Janssen reaching certain pre-determined development, regulatory and commercial milestones, in addition to tiered, double-digit royalty payments. Janssen will be responsible for funding all development and commercialization activities related to niraparib in prostate cancer. Separately, Johnson & Johnson Innovationâ€”JJDC, Inc. is making a $50 million equity investment in Tesaro at a price of $44.24 per share, which is based upon the five-day volume weighted average share price through the day prior to execution of the agreement.