AkaRx and MGI close AKR-501 deal

US firms AkaRx and MGI Pharma say that their previously-announced development and license agreement has become effective. The deal provides MGI with the exclusive rights to develop AKR-501, a novel, small-molecule thrombopoietin mimetic being investigated for the treatment of thrombocytopenia, and an option to acquire AkaRx at its sole discretion at any time up to January 8, 2010. AKR-501 is an orally-available, full agonist that targets the c-Mpl receptor on platelet producing cells to stimulate platelet production, for which MGI has forecast peak sales of up to $1.0 billion.

Under the terms of the transaction, MGI has made payments of $45.0 million in aggregate to AkaRx and its shareholders to acquire certain license rights and all of AkaRx's capital stock if it decides to do so. MGI has assumed responsibility for certain development activities during the option period.

As part of the accord, MGI also obtained rights to AKR-201, a metabolite of thyroid hormone targeting thyroid cancer. AKR-201 is in preclinical development and has received an orphan drug designation from the US Food and Drug Administration.