Schering-Plough and Genzyme Molecular Oncology Announce Licensing Agreement for p53 Gene Therapy Patent Rights

Schering-Plough Corporation and Genzyme Molecular Oncology have entered into a licensing agreement that grants Schering-Plough worldwide rights to develop and commercialize p53 gene therapy products. Under the agreement, Genzyme Molecular Oncology will receive a $5 million up-front payment and could receive up to $35 million in milestone fees, as well as royalties on product sales. This deal expands the existing collaboration between the two companies and enhances the value of Genzyme Molecular Oncology's intellectual property.

Key Takeaways:

• The licensing agreement grants Schering-Plough worldwide rights to develop and commercialize p53 gene therapy products, which could potentially reach over $35 million in milestone fees and royalties.
• Genzyme Molecular Oncology will receive a $5 million up-front payment, in addition to potential royalties on product sales.
• The agreement builds on the existing research and option agreement between the two companies, which has the potential to be worth $80 million.
• Schering-Plough has been working on its p53 gene therapy program since 1994, and has conducted several clinical studies, including Phase II trials in ovarian, liver, and non-small-cell lung cancer.
• Genzyme Molecular Oncology develops gene-based approaches to cancer therapy and diagnosis, and has two Phase I gene therapy trials completed for melanoma.

Statistics:

• Schering-Plough could receive up to $35 million in milestone fees and royalties under the licensing agreement.
• Genzyme Molecular Oncology will receive a $5 million up-front payment.
• The research and option agreement between the two companies has the potential to be worth $80 million.
• Over 50% of human cancers have a functional deficiency in the p53 gene.
• Schering-Plough has conducted several clinical trials, including Early Phase trials in ovarian and liver cancer, and a Phase II trial in non-small-cell lung cancer.

Sources:

• "Schering-Plough and Genzyme Molecular Oncology Announce Licensing Agreement for p53 Gene Therapy Patent Rights", Schering-Plough Corporation and Genzyme Molecular Oncology, October 27, 1998.
• "Genzyme Molecular Oncology and Schering-Plough Announce Research and Option Agreement", Schering-Plough Corporation and Genzyme Molecular Oncology, January 1998.
• "Genzyme Molecular Oncology to Begin Trading as Separate Public Company", Genzyme Molecular Oncology, November 1998.
• "Phase I Clinical Trials of Gene Therapy Completed for Melanoma", Genzyme Molecular Oncology, 1998.
• "Schering-Plough's p53 Gene Therapy Program", Schering-Plough Corporation, 1998.