OSI and Aveo sign $10M development deal

New York-based drugmaker OSI Pharmaceuticals and fellow US firm Aveo Pharmaceuticals have entered into a small-molecule drug discovery collaboration, which will focus on the development of agents that target epithelial-mesenchymal transition (EMT) in cancer. The companies explained that they will develop target-driven tumor models for use in the screening and biomarker validation operations of OSI's drug discovery programs.

OSI said that EMT, and specifically its role in tumor development and disease progression, has become one of the main focuses of its oncology program. The firm added that its interest in the mechanism was a result of efforts to better understand the treatment benefits conferred by its flagship product Tarceva (erlotinib), which has identified EMT's role in several oncogenic signalling pathways.

Under the terms of the deal, OSI will make an upfront payment of $10.0 million in cash in return for access to Aveo's extensive database of tumor targets. OSI, which will conduct all clinical development of candidates arising from the deal, will provide research funding, regulatory milestone payments and royalties on subsequent product sales. OSI has also agreed to make a $5.0-million equity purchase in Aveo. Further financial terms of the collaboration were not disclosed.