Radius Health granted Novartis an option to obtain an exclusive worldwide license, excluding Japan, to its osteoporosis compound. The deal is worth over $375 million for Radius and $125 million to Ipsen, the original holder of the rights pertaining to BA058. This Phase II candidate is a PTHrP (parathyroid hormone-related protein) analogue.
If Novartis exercises its right, Radius stands to earn $500 million in upfront and milestone-based fees plus royalties. Novartis will then assume the global clinical development, manufacturing, and marketing of BA058 in all regions except Japan. Radius has retained the option to co-commercialize the medication in the U.S.
Of the amount received from Novartis, Radius will, in turn, pay Ipsen up to $125 million related to the achievement of certain milestones as well as royalties. In September 2005 Radius gained a worldwide license to the candidate excluding Japan. Teijin previously acquired Japanese rights to the product from Ipsen.