Alliances and Collaborations
Kyowa Hakko Kogyo Alliance
In April 2007, we entered into an alliance with Kyowa Hakko Kogyo Co., Ltd. to develop and commercialize ARQ 197, a small molecule, selective inhibitor of the c-Met receptor tyrosine kinase, in Japan and parts of Asia. The agreement includes $123 million in upfront and potential development milestone payments from Kyowa to ArQule, including a $30 million cash upfront licensing payment. In addition, the agreement includes undisclosed sales milestone payments. Upon commercialization, ArQule will receive double-digit royalties from Kyowa on net sales of ARQ 197. Kyowa will be responsible for clinical development costs and commercialization of the compound in certain Asian countries, consisting of Japan, China (including Hong Kong), South Korea and Taiwan.
Hoffmann-La Roche Alliance
In April 2004, we entered into an alliance with Hoffmann-La Roche to discover and develop drug candidates targeting the E2F biological pathway, including ARQ 501 and other compounds from our ARQ-550RP program. Under the terms of the agreement, Roche obtained an option to license drugs resulting from our E2F program in the field of cancer therapy. Roche provided immediate research funding of $15 million and financial support for ongoing research and development. To date, we have received approximately $21.8 million in research and development support from Roche. We are responsible for advancing drug candidates from early stage development into Phase 2 trials. Roche may opt to license worldwide rights for the development and commercialization of products resulting from this collaboration by paying an option fee. Assuming the successful development and commercialization of a compound under the program, we could receive up to $276 million in predetermined payments, plus royalties based on net sales. Additionally, we have the option to co-promote any commercialized products in the U.S.
Non-oncology Collaborations
The following programs are derived from former chemistry technology collaborations. ArQule has received milestone payments under these collaborations. Should any of the compounds related to these programs proceed further in the clinic or become marketed drugs, under the terms of the agreements, ArQule will be eligible to receive further milestone payments and royalties.
Wyeth
Wyeth: Alzheimer's disease
Solvay
Solvay: Irritable bowel syndrome
