OSI muscles up

It is a fact of life that the more advanced a compound, the more leverage a company has when it comes to partnering. With $385 million in the bank, OSI Pharmaceuticals Inc. could have waited until after Phase III or even after FDA approval to license its OSI-774 cancer compound, which is in Phase II trials. But the company decided that the need to play catch-up with competitor AstraZeneca plc, coupled with a bidding war that led to deal terms similar to those for a compound in registration, made it prudent to do a worldwide deal with Genentech Inc. and F. Hoffmann-La Roche Ltd. sooner rather than later.

OSI-774 is a small molecule inhibitor of the epidermal growth factor (EGF) receptor that is in Phase II testing to treat non-small cell lung, head and neck and ovarian cancers. "EGFr is involved in a wide range of tumors," said OSIP Chairman and CEO Colin Goddard. "To maximize its potential, a comprehensive development program is required involving nearly all primary tumor types and also secondary tumor types. This plan leads to a $200-$300 million development budget over the next few years." ...