The two companies announced Wednesday a settlement in the lawsuit over the development and marketing of the cancer drug regorafenib. Onyx got the best of the deal.
Onyx filed the suit in May 2009, accusing its partner Bayer of duplicitous dealings around regorafenib, which is a close chemical cousin to the approved cancer drug Nexavar that the companies market jointly worldwide.
Bayer claimed regorafenib as its own, insisting Onyx had no rights to the drug. Onyx disagreed, claiming that regorafenib's development violated the Nexavar partnership agreement. A trial to decide the lawsuit began earlier this week.Under terms of the settlement, Bayer will pay Onyx a 20% royalty on worldwide sales of regorafenib. Bayer will also pay a one-time $160 million fee in exchange for Japanese royalty rights to Nexavar, the companies said. A change-of-control provision in their partnership which gives Bayer additional rights to Nexavar if another party acquires Onyx was also eliminated. Bayer retains control of regorafenib's clinical development and foots the bill for the drug's clinical studies. Regorafenib is being studied in two phase III studies in advanced gastrointestinal stromal tumors (GIST) and advanced colon cancer, with results expected next year for the GIST study and late this year or early next year for the colon cancer study. --Written by Adam Feuerstein in Boston.
>To contact the writer of this article, click here: Adam Feuerstein. >To follow the writer on Twitter, go to http://twitter.com/adamfeuerstein. >To submit a news tip, send an email to: email@example.com. Follow TheStreet on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV