Roche has bought the exclusive world-wide rights to Antisoma's oncology pipeline in a deal the biotech company's chief executive has called 'ground-breaking'.

The deal gives Roche access to Antisoma's portfolio of cancer drugs, including Pemtumomab, the company's lead product, in phase III trials for ovarian cancer.

Roche will take a 10% equity stake in Antisoma for £4.15 million and make a separate cash payment to access the UK biotech's cancer portfolio. Further access, development, milestone and commercialisation payments will be made at a later date.

Total payments to Antisoma could surpass $500 million, excluding royalties on product sales, if all products reach the market.

"This is a ground-breaking agreement for the European biotechnology industry", said Glyn Edwards, Antisoma's Chief Executive."The commitment by Roche underlines the quality and depth of our portfolio and will enable us to bring them to market in the broadest range of indications and the fastest possible time."

A spokesman for the company said the collaboration could provide a boost for the rest of the UK biotech sector, currently under pressure to consolidate. "It shows that even in this current tough environment, biotech companies can do deals with big pharma with relatively favourable terms for themselves", he said.

"In terms of size and scope it shows what's possible and could provide some precedent for other companies with a reasonably solid pipeline."

The developments and costs of both Pemtumomab, due to finish phase III trials in the second half of 2004, and Therex, in phase I trials for multiple indications, will be handled by Roche. These two drugs accounted for almost half of Antisoma's costs last year and the saved cash will be ploughed back into in-licensing new products.

Antisoma has applied to end an existing licensing deal for Pemtumomab it had with Abbott Laboratories, which dates back to October 1999.

Roche also gains the rights to Therafab for non-small cell lung cancer and DMXAA, which disrupts tumour blood flow, both in phase I trials, and has a five-year option to license any of Antisoma's pre-clinical candidates once they enter clinical development.

Roche has already indicated it would not take on brain cancer drug Angiomab due to its limited market potential, said the Antisoma spokesman.

The deal will further expand the Swiss company's growing oncology franchise, which already includes MabThera for lymphoma, the company's top selling drug, breast cancer treatment Herceptin, and Xeloda for breast and colorectal cancer.

First half sales at Roche's oncology division rose 31% to CHF 2.4 billion (£1.1 billion).

William H Burns, Head of Roche's Pharmaceuticals Division, said the company was "very fortunate" to have found such an attractive partner in one its strategically important areas.

pharmafocus@pharmafile.co.uk