US-based biopharmaceutical firm Royalty Pharma has acquired University of California, Los Angeles’ (UCLA) royalty interest in the prostate cancer drug Xtandi (enzalutamide) for $1.14bn.
The rights were jointly owned by the university, researchers working at UCLA at the time of the discoveries and a research organisation.
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The deal includes potential additional payments depending on future Xtandi sales.
UCLA will use its share of the proceeds, about $520m, to support research programmes, undergraduate scholarships and graduate student fellowships.
Through the divestment of the royalty interest and prudently investing proceeds, the university intends to offer stability and reduce risk related with the volatility of the pharmaceutical industry marketplace.
Royalty Pharma founder and CEO Pablo Legorreta said: "Through their discovery of Xtandi, they have improved the lives of hundreds of thousands of prostate cancer patients who suffer from this deadly disease.
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By GlobalData"Royalty Pharma’s mission is to make the life sciences research and development ecosystem more efficient and productive, and to accelerate research through innovative transactions such as this one."
Xtandi is based on a chemical compound that was developed at UCLA. It is a prescription medicine used to treat men with prostate cancer that no longer responds to a medical or surgical treatment, which reduces testosterone and spread to other parts of the body.
The drug inhibits the androgen receptor, which drives prostate cancer progression. In one Phase III clinical trial of patients earlier treated with chemotherapy, Xtandi reduced the risk of death by 37% and increased median survival by 4.8 months, compared to a placebo.
In another Phase III trial of patients not previously treated with chemotherapy, Xtandi reduced the risk of death by 23% and increased median survival by four months.
In 2005, UCLA licensed the chemical compound’s patent to Medivation. The company secured approval from the US Food and Drug Administration (FDA) in 2012 to market Xtandi as a prostate cancer medication.
Currently, Medivation and its sub-licensee Astellas Pharma are selling Xtandi across the globe.
It is reported that UCLA has no role in the marketing or sale of Xtandi.
Image: Xtandi pills (capsules shown not actual size). Photo: courtesy of PR Newswire/ Astellas Pharma Inc.
