BASEL, Switzerland, NEW YORK and JERUSALEM , Feb. 18, 2013 /PRNewswire/ -- Roche (SIX: RO, ROG; OTCQX: RHHBY) and Chiasma (pronounced key-az-ma) Inc., a privately held biopharma company, announced today that they have entered into an agreement to develop and commercialize Chiasma's proprietary product Octreolin, initially for acromegaly and subsequently for neuroendocrine tumors. Octreolin is an investigational oral form of the peptide octreotide, a somatostatin analog that is commercially available only by injection. Octreolin is currently in a pivotal phase 3 clinical trial for acromegaly.
Under the terms of the agreement, Roche received a worldwide exclusive license to Octreolin, and will assume responsibility for the commercialization of Octreolin. Genentech will market the product in the United States after US FDA approval. Chiasma will continue development through completion of the pivotal phase 3 clinical trial for acromegaly. The arrangement includes an upfront payment to Chiasma of $65 million, future considerations of up to $530 million in development and commercial milestones, as well as tiered, double-digit royalties on Octreolin net sales.
Commenting on the deal, Fredric D. Price, Chiasma's Chairman and Chief Executive Officer said: "We are especially pleased to have entered into this agreement with Roche, an ideal collaboration partner that has the right development and commercial resources in the areas of endocrinology and oncology to support Octreolin."Hal Barron, M.D., Roche Global Head of Product Development and Chief Medical Officer added: "If approved, Octreolin would be an important alternative for patients with acromegaly, a disorder that develops when a person's pituitary gland produces too much growth hormone. Octreolin is an investigational oral regimen that avoids the painful injections of current treatment options." Evercore Partners served as Chiasma's financial advisor on the transaction, and Latham & Watkins LLP served as its legal counsel.