Rexahn signs agreement with pharmaceutical company for new anti-cancer compound

Rexahn Pharmaceuticals, a biopharmaceutical company, has signed an exclusive collaboration and option for licensing agreement with a top 20 global pharmaceutical company, the Partner Co, for the development of RX-3117, a small molecule, new chemical entity, nucleoside compound that has an anti-metabolite mechanism of action, and has therapeutic potential in a broad range of cancers including colon, lung and pancreatic cancer.

The obligation of the Partner Co to proceed with the transaction is subject to its satisfaction with its ongoing due diligence activities and to the satisfaction of other customary conditions.

Assuming that the Partner Co elects to proceed, then under the terms of the agreement, Rexahn will receive upfront payments in the form of equity investment and, assuming the license option is exercised, will be eligible to receive development, regulatory and sales milestone payments. In addition, Rexahn will receive royalties on net sales worldwide.

The signing of the agreement by both parties precedes a definitive deal closing for the exclusive development and commercialization of RX-3117. Additional financial terms of the transaction were not disclosed.

Chang Ahn, chairman and CEO of Rexahn, said: "In addition to the strength of our Phase II compounds Archexin, Serdaxin and Zoraxel, the depth of our preclinical pipeline is a key differentiator of our company. The commitment of a big pharmaceutical partner to collaborate with Rexahn is a major step forward in our strategy and validates the commercialization value of our innovative pipeline.

"RX-3117 is a promising anticancer compound with potential for oral and intravenous formulation, and this new partnership serves to rapidly advance its development and helps us realize a potentially significant revenue stream."

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Related terms: cancer, ceo, colon, equity, investment, pharmaceuticals, pipeline, revenue, sales