Synta 'signs collaboration deal with Roche'
31 Dec 2008
Synta Pharmaceuticals says it has signed a drug development deal with Roche, potentially worth $1 billion (£6.9 million).
Roche will fund the biotechnology firm's research into compounds for the treatment of inflamatory diseases for an initial two-year period, earning worldwide rights to manufacture and market three products.
Synta will gain $25 million of license fees and could earn up to $245 million for reaching development milestones for the first product.
It may also be eligible for milestone payments of $122.5 million for the second and third drugs and up to $170 million for meeting sales milestones for all three.
Shares in US-based Synta rose following the announcement and the firm said it will receive tiered royalties for all three drugs.
Roche announced this week that it has received US Food and Drug Administration approval for a blood-testing system which will be used to screen donated blood for HIV, Hepatitis B and Hepatitis C.
