Celgene, Epizyme in epigenetic deal
Celgene Corp. (NASDAQ:CELG) partnered with Epizyme Inc. (Cambridge, Mass.) to discover, develop and commercialize cancer therapeutics that inhibit histone methyltransferases. Celgene will receive ex-U.S. rights to Epizyme's histone methyltransferase DOT1L (DOT1L) inhibitor, which is preclinical testing for mixed-lineage leukemia (MLL). Celgene also will have an exclusive option to license ex-U.S. rights to histone methyltransferase inhibitors discovered under the deal for an initial three years, with a potential one-year extension. The deal does not include histone methyltransferases that are already covered under two deals with other companies. The partners will co-fund global development. Epizyme will receive $90 million up front, which includes an equity investment. Epizyme will be eligible for more than $160 million in milestones for each licensed program, as well as double-digit royalties on ex-U.S. sales. Celgene was off $4.99 to $72.92 on Thursday. Also on Thursday, Celgene reported 1Q12 financial results below the Street's estimates (see below). ...