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Adherex Technologies (ADH) Regains All Rights to ADH-1 and Will Continue Clinical Development

October 11, 2006 9:13 AM EDT
Adherex Technologies (AMEX: ADH) announced that the GlaxoSmithKline (NYSE: GSK) one-time option to license ADH-1 has expired unexercised. As a result, Adherex has regained all rights relating to ADH-1 and will continue with the clinical development of the compound. The license agreement with GSK relating to eniluracil remains unchanged.

Under the license agreement, Adherex maintains an exclusive license to eniluracil for all indications and GSK retains its options to buy back the compound at specific points in time during the drug's development. If GSK exercises any of its options for eniluracil, Adherex would receive development and sales milestone payments of up to US$120 million plus up to double digit royalties.

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