Cancer therapy drug developer Circadian Technologies (ASX: CIR) has received a major vote of confidence from biopharmaceutical global player Chugai Pharmaceutical, with worldwide VEGF-D intellectual property rights granted.
Chugai is part of the Roche Group of companies, 52% owned by Hoffman La-Roche.
With the deal, Circadian cements its position as a world leader in vascular endothelial growth factor (VEGF-D) development.
With Chugai's VEGF-D inventory, this enhances Circadian's ability to generate early revenues by using VEGF-D to develop new diagnostics and treatments.
VEGF-D is a major new target for cancer and other diseases including diagnostics for respiratory disease.
Importantly, the agreement allows Circadian to sub-licence which will enable the company to expand work in utilising the VEGF-D intellectual property estate through selective partnerships.
Consideration for the agreement is Circadian will pay an upfront licence fee to Chugai, and milestone payments and royalties on certain VEGF-D related products.
Robert Klupacs, chief executive officer of Circadian, said "It is a great honour for us that such a well regarded company as Chugai - a major player in Japan and part of the Roche group - has the confidence in our product development and commercialisation skills to grant us a licence to their intellectual property."
Chugai had revenues of $US4.6 billion in 2009.