3:37 PM
 | 
Sep 12, 2018
 |  BC Extra  |  Company News

Zai Lab gets Chinese rights to Novocure's oncology tech

Novocure Ltd. (NASDAQ:NVCR) granted Zai Lab Ltd. (NASDAQ:ZLAB) exclusive rights to oncology platform Tumor Treating Fields in China, including Hong Kong and Macau, and Taiwan.

Novocure will receive $15 million up front and is eligible for $78 million in development, regulatory and commercial milestones, plus tiered royalties.

Tumor Treating Fields technology uses alternating electric fields delivered by electrodes to disrupt the division of cancer cells in the brain. The technology is marketed as Optune in the U.S., EU, Switzerland and Japan to treat recurrent glioblastoma multiforme (GBM). Zai will be responsible for regulatory submissions and commercialization in the territories.

Novocure and Zai will jointly conduct development activities in multiple solid tumor indications, and Zai plans to conduct a Phase II trial of the technology in China for gastric cancer.

Zai already has Chinese rights to several cancer and anti-infective drugs, including PARP inhibitor Zejula niraparib from Tesaro Inc. (NASDAQ:TSRO). Zai is conducting Phase III testing of the drug in China to treat ovarian cancer and small cell lung cancer (SCLC), and plans to launch the drug in Hong Kong this year.

Last week, Zai raised $150 million in a follow-on. The company earmarked $40 million of the funds for new business development and licensing opportunities.

On Wednesday, Novocure gained $2 to $47.10 and Zai lost $0.26 to $18.04.

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