Onconova says Baxalta ends $565 million drug development deal for rigosertib

pharmafile | March 8, 2016 | News story | Manufacturing and Production, Research and Development |  Baxalta, Onconova Therapeutics, drug development, rigosertib 

Onconova Therapeutics says Baxalta has terminated its $565 million agreement to jointly develop the company’s lead drug candidate rigosertib.

Baxalta said the deal was not aligned with its strategic priorities in the termination notice, which is effective August 30, 2016.

Baxalta signed a deal for the experimental Onconova drug in September 2012. In December, Onconova began enrolling the first of about 225 patients for the next stage of trials for rigosertib as a potential treatment for higher-risk myelodysplastic syndromes (HR-MDS).

Dr Ramesh Kumar, Onconova’s chief executive, said, “Onconova is deeply disappointed by the timing of Baxalta’s decision, given that patient enrollment in this pivotal trial for patients with short life spans and no alternative available therapies commenced only three months ago.” 

Under the terms of the agreement, Baxalta is obligated to provide various financial contributions, including 50% of the clinical trial costs for the trial up to a specified cap until the August 30 termination date. 

Onconova is currently in discussions with Baxalta regarding the amount of financial support sufficient to complete the trial that was commenced in December following consultation with Baxalta.

Rigosertib is in trial stage for myelodysplastic syndrome, a bone marrow disorder that usually develops after patients receive cancer therapy.

Anjali Shukla