ChemGenex signs licensing deal with Hospira

Australian biotechnology group ChemGenex Pharmaceuticals and US pharmaceutical firm Hospira have entered into an exclusive agreement to license, develop and commercialise ChemGenex's lead cancer candidate omacetaxine mepesuccinate in Europe, the Middle East and parts of Africa.

Applications for marketing approval of the product have been accepted for regulatory review in both the US and Europe for treatment of patients with chronic myeloid leukemia (CML) who have failed to respond to current treatment, imatinib mesylate, and who also have a particular leukaemia mutation.

Under the terms of the deal, Hospira will make an initial payment of Euro 11.1m (A$17.8m), with the potential for up to an additional €74.1m (A$119.4m) in performance milestone payments based on the successful development and commercialisation of omacetaxine. Hospira will also pay ChemGenex a royalty on product sales following commercialisation.

ChemGenex is to complete registration of omacetaxine in its initial indication with the European Medicines Agency (EMEA), while Hospira and ChemGenex will collaborate to explore future applications in a variety of haematological malignancies.

"We are very pleased to announce this important agreement, in keeping with our corporate strategy of partnering in Europe and other parts of the world, as we prepare for the launch of omacetaxine in the US, if approved," said Greg Collier, chief executive of ChemGenex.

"We look forward to working with the Hospira team to realise omacetaxine's potential in the haematology/oncology space in Europe."