Mitsubishi pays $103M for CTA018 rights

Canada's Cytochroma and Japan's Mitsubishi Tanabe Pharma have signed a license agreement under which the former granted MTPC an exclusive license in the USA and Asia, including Japan, to develop and commercialize CTA018, its novel vitamin D analog. This is entering Phase II development in Canada for the treatment of secondary hyperparathyroidism in patients with chronic kidney disease.

The accord also grants MTPC access to certain follow-on compounds for the same territories, with Cytochroma retaining all rights to CTA018 and these latter agents in all regions outside the USA and Asia.

Under the terms of the deal, Cytochroma could receive a total of up to C$105.0 million ($102.8 million), which includes an upfront payment, milestones, and an equity investment. The latter provision means that MTPC will receive a certain number of Cytochroma's Class C shares. The two companies will jointly develop and commercialize CTA018 in the USA. In Asia, including Japan, MTPC has full rights and responsibilities for product development, approval and commercialization, and will pay Cytochroma a royalty on sales.