Schering-Plough Gene Therapy Deal

Schering-Plough and Canji Inc have signed a strategic research agreement to develop new cancer treatments based on Canji's proprietary p53-based gene therapy technology.

The tumor suppressor technology developed by Canji works by replacing specific malfunctioning genes such as p53 to block uncontrolled cell division. According to the company, preclinical testing has shown that restoring the p53 gene in certain cancer cells makes them incapable of producing tumors.

The agreement grants Schering-Plough exclusive worldwide licenses to make, use and sell p53 tumor suppressor gene products for all human and animal uses. In return, Canji has received an initial undisclosed cash investment and will receive annual performance and milestone payments over the next several years. If all milestones are reached, payment to Canji could exceed $50 million.