Boston, MA 09/03/2014 (wallstreetpr) – AbbVie Inc (NYSE:ABBV) andInfinity Pharmaceuticals Inc. (NASDAQ:INF) have announced their collaboration to develop and commercialize duvelisib, which is Infinity’s lead investigational drug. The companies have entered an agreement in which $275 million will change hands upfront in favor of Infinity. There is also room for additional milestone payments with the achievement of certain development targets and regulatory approval.
Infinity is eligible for up to $500 million in future milestone payments. It will also shares the U.S. market and profits with AbbVie Inc (NYSE:ABBV) if the drug secures regulatory approval for commercialization. In the markets outside the U.S., Infinity would benefit from double-digit royalties, the companies said. AbbVie and Infinity will jointly commercialize the drug in the U.S. market.
Attractive clinical data
According to AbbVie Inc (NYSE:ABBV)’s Chief Scientific Officer, Michael Severino, duvelisib is a promising drug candidate based on the data that show its activity in a range of blood cancers. He believes that duvelisib will boost their oncology pipeline. Duvelisib has shown attractive clinical activity in blood cancers that include chronic lymphocytic leukemia and indolent non-Hodgkin lymphoma. The drug is currently in mid-stage and late-stage trials to assess its safety and efficacy.
Industry deals
The deal with AbbVie Inc (NYSE:ABBV) comes hot on the heels of a separate deal that Infinity entered to buy royalty rights for duvelisib from Millennium. Infinity agreed to pay $5 million to take care of an option to end the royalty agreement for $52.5 million in a one-time payment. However, Infinity remains on the milestone hook for $455 million.
The latest deal comes just when AbbVie Inc (NYSE:ABBV) is trying to relocate its tax office from the U.S. under what is known as tax inversion. The company agreed to pay $54 billion to acquire Shire, which will help it in moving its tax base to Ireland in an attempt to narrow its tax burden and create value for the shareholders.
