Medivation Signs Partnership Deal With Astellas

SAN FRANCISCO (AP) — Medivation Inc. said Tuesday it will receive $110 million and potential milestone payments after signing a development deal with Astellas Pharma Inc. to develop a potential prostate cancer treatment.

Under the deal, Medivation will receive the upfront payment and has the potential to receive milestone payments up to $655 million. The deal also includes 50 percent of U.S. profits and royalties on sales outside the U.S. if the potential treatment reaches the market. Astellas is headquartered in Japan.

Medivation, based in San Francisco, is developing MDV3100 as a potential treatment for prostate cancer. It is currently in late-stage development.

Prostate cancer is the most common non-skin cancer in men, according to the American Cancer Society, affecting more than 2 million men.

Shares of Medivation rose $1.70, or 6.5 percent, to $27.80 in premarket trading.