Novacea and Schering-Plough Prostate Cancer Pact

by Jon C. Ogg
24/7 Wall St.



Novacea (NOVC) is seeing its shares up more than 70% after signing a pact with Schering-Plough (SGP) over the development and commercialization of Asentar for the treatment of prostate cancer. Novacea will receive an upfront payment of $60 million, including $35 million as reimbursement for past research and development expenses, a license fee of $25 million, as well as a commitment by Schering-Plough to purchase $12 million of Novacea common stock at a predetermined price within ten days of the closing. Additionally, the agreement provides Novacea with potential pre-commercial milestone payments of up to $380 million, and tiered royalties on worldwide sales of Asentar.

Novacea is currently conducting a large international Phase 3 trial evaluating Asentar in 900 patients with androgen-independent prostate cancer.

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