Onyx Pharmaceuticals (ONXX) Acquires Option to License Rights to SB1518

January 6, 2009 4:31 PM EST

Onyx Pharmaceuticals, Inc. (Nasdaq: ONXX) has acquired an option to license rights to SB1518, an orally available, potent, and selective inhibitor of Janus Kinase 2 (JAK2), and SB1578, also a JAK2 inhibitor, from S*BIO Pte Ltd based in Singapore.

Under the terms of the agreement, Onyx has obtained option rights to exclusively develop and commercialize SB1518 (designated by Onyx as ONX 0803) and SB1578 (designated by Onyx as ONX 0805) for all potential indications in the United States, Canada, and Europe. S*BIO will retain responsibility for all development costs prior to option exercise, after which Onyx will assume development costs for the U.S., Canada, and Europe subject to S*BIO's option to fund a portion of the development costs in return for enhanced royalties on any future product sales.

Upon option exercise for each compound, S*BIO will receive a one-time fee, milestones upon achievement of certain development and sales triggers and royalties on future product sales. Under the terms of the agreement, in December 2008, Onyx made a $25 million payment to S*BIO, including an up-front payment and an equity investment. After recognizing R&D expense related to the S*BIO transaction, Onyx continues to anticipate profitability for the full year 2008 on a non-GAAP basis, excluding stock-based compensation.

Onyx Pharmaceuticals, Inc. (Onyx) is a biopharmaceutical company engaged in developing therapies that target the molecular mechanisms that cause cancer.[SM]

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