UCB and Wilex partner to develop cancer drugs

Published: 15-Jan-2009

UCB Pharma, a biopharmaceutical and specialty chemical company, and Wilex, a developer of drugs and diagnostic agents for cancer, have agreed to enter into a strategic partnership. Pursuant to the terms of the agreement, Wilex will acquire world-wide rights to develop UCB's entire preclinical oncology portfolio, comprising two small-molecule programs and three antibody programs.

UCB retains exclusive rights to re-purchase each of the five programs, following completion of initial clinical feasibility studies for each program, and assume the responsibility for further development and commercialization of each product. In this case, Wilex will receive development and commercialization milestone payments and royalty payments from UCB.

Alternatively, in the event UCB does not exercise its re-purchase right for each program, Wilex will retain rights to develop as well as commercialize each program and UCB will receive milestone and royalty payments from Wilex. As a strategic investor, UCB will invest E10 million in Wilex upon closing and will also make milestone payments of E10 million in total upon application of clinical Phase I trial and first dose in man, expected within approximately twelve months upon closing.

Under the agreement, UCB has granted the rights to the five preclinical oncology programs to a new legal entity wholly owned by UCB. The new entity will be funded by UCB with E10 million in cash and will be acquired by Wilex in consideration for 1.81 million newly issued shares in Wilex from its authorized capital, subject to the exclusion of shareholders' subscription rights. This transaction will provide UCB with approximately 13% ownership of Wilex at closing of the transaction.

The strategic alliance has been approved by both the UCB and Wilex boards. The relevant capital increase of Wilex is, however, subject to the approval of Wilex boards and will take effect at the time it is recorded in the company's commercial register.

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