) is a leader in the oncology market with several leading drugs
in its portfolio.
In particular, Roche is well placed in breast cancer market
fueled by its HER2 franchise which includes Herceptin and
recently launched drugs like Perjeta and Kadcyla.
Meanwhile, Roche is also making efforts to develop drugs for
other indications. The company recently entered into a worldwide
collaboration agreement with
As per the agreement, both the companies will collaborate to
develop and commercialize antibodies that target alpha-synuclein,
including Prothena's monoclonal antibody, PRX002 developed for
the treatment of Parkinson's disease. PRX002 is currently in
preclinical development and is expected to enter phase I clinical
trials in 2014.
Roche will make an upfront and clinical milestone payment of
$45 million to Prothena. In addition, Prothena is also entitled
for additional payments of up to $380 million upon the
achievement of development, regulatory and sales milestones along
with an additional $175 million in milestone payments for sales
outside the U.S. The total payments, both upfront and milestones,
may amount up to $600 million on a global basis.
Per the terms of the agreement, Roche and Prothena will
collaborate primarily for the development of PRX002 for
Parkinson's disease and potentially other synucleinopathies.
The agreement also provides Prothena with an option to
co-promote PRX002 in the U.S. Both the companies have agreed to
share all development and commercialization costs on a 70/30
basis (70% Roche and 30% Prothena) in the U.S. However, outside
the U.S., Roche will be solely responsible for developing and
commercializing PRX002 and pay Prothena up to double-digit
royalties on net sales.
Moreover, Roche and Prothena will initiate a research
collaboration focused on optimizing early stage antibodies
targeting alpha-synuclein. This research collaboration will
include incorporation of Roche's proprietary Brain Shuttle(TM)
technology to increase delivery of therapeutic antibodies to the
Roche currently carries a Zacks Rank #3 (Hold). Right now,
stocks that look attractive include
). Both carry a Zacks Rank #2 (Buy).
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