AstraZeneca gains rights to Rigel's asthma candidate R256

Anglo Swedish drug major AstraZeneca (LSE: AZN) and signed an exclusive global license accord with USA-based Rigel Pharmaceuticals (Nasdaq: RIGL) for the global development and commercialization of R256, Rigel's inhaled JAK inhibitor shown to inhibit IL-13 and IL-4 signaling, which is being investigated as a treatment for moderate to severe chronic asthma. In preclinical research, R256 has been shown to reduce airway inflammation and improve lung function.

Rigel will receive an upfront payment of $1 million from AstraZeneca, with an additional $8.25 million in early milestone payments anticipated by the end of 2013. Under the terms of the deal, together with other specified developmental, regulatory and launch milestone payments, the R256 collaboration could be worth up to $100 million to the US firm. Additionally, upon marketing approval of R256, Rigel will be eligible to receive tiered royalty payments on product sales.

The news saw Rigel shares rise 4.7% $8.98 in morning trading yesterday, when US shares of AstraZeneca advanced 2.5% to $43.20.

Strongest respiratory and inflammation pipeline claimed by AstraZeneca