Synta signs potential $1 billion deal with Roche
January 8, 2009
Biotechnology company Synta Pharmaceuticals Corp. could receive more than $1 billion in payments from Roche under a drug development partnership, the company said in a Securities and Exchange Commission filing, as reported by the Associated Press. Under the deal, Lexington, Mass.-based Synta will conduct research on compounds that could become treatments for inflammatory diseases. Switzerland-based Roche will fund the research for an initial two-year period and receive worldwide rights to develop and sell three products. In return, Synta receives $25 million in upfront license fees and is eligible to receive $245 million in development milestones for the first product, and up to $122.5 million each for the second and third products. Synta is also eligible for sales milestone payments up to $170 million for each of the three products. Synta will receive tiered royalties on all product sales and retains the right, in indications other than rheumatoid arthritis, to co-develop and co-promote in the U.S. at Roche''s expense.