Par Pharmaceutical Companies Inc.'s (NYSE:PRX) proprietary products division said Tuesday it has acquired the exclusive licensing and commercialization rights to Onconase from Alfacell Corp. (NASDAQ:ACEL)
Onconase is a drug used in the treatment of inoperable malignant mesothelioma currently in Phase III development.
Under the terms of the agreement, Par's Strativa Pharmaceuticals unit will make an initial payment of $5 million to Alfacell. It will also pay an additional $30 million upon approval of the drug by the Food and Drug Administration.
Alfacell will retain the right to co-promote Onconase in the future and is also entitled to royalty payments from sales, as well as possible milestone payments of an undisclosed amount.
Alfacell is a Bloomfield, N.J.-based pharmaceutical company. Its stock closed Monday at $1.75.
Par is a Woodcliff Lake, N.J.-based pharmaceutical company. Its stock closed Monday at $20.97.