Sanofi and Taiho agree cancer-candidate deal

French drug major Sanofi-Aventis and Japan's Taiho Pharmaceutical say they have signed and agreement under which the former is granted the rights to develop and market the latter's anticancer agent S-1. The drug is an oral pyrimidine fluoride-derived compound in which a prodrug of 5-FluoroUracil (5-FU) is combined with two inhibitory agents, which function to increase the amount of circulating 5-FU with reduced gastrointestinal toxicity.

Under the terms of the deal, Sanofi will be responsible for the development and commercialization of the product worldwide, with the exception of Japan and several other Asian countries. In return, the firm will pay an upfront fee, make milestone payments and will pay royalties based on product sales. Taiho retains the right to participate in the development of the compound, and has the option to take part in promotional activities in any country where its French partner launches developed products. Financial terms of the agreement were not made public.

The firms added that the drug, which has been marketed for the treatment of gastric, colorectal and head and neck cancers among others, produced revenue of 31.0 billion yen ($113.4 million) in 2005. They went on to say that it is currently in Phase III assessment in Europe and the USA.