Clovis Oncology Buys EOS S.p.A.

(RTTNews) - Clovis Oncology, Inc. (CLVS) said Tuesday that it has acquired EOS S.p.A., a privately-held Italian biopharmaceutical company developing a novel targeted therapy to treat cancer.

EOS owns the exclusive global (excluding China) development and commercialization rights for lucitanib, an oral, dual-selective inhibitor of the tyrosine kinase activity of fibroblast growth factor receptors 1 and 2 and vascular endothelial growth factor 1-3. In 2012, EOS sublicensed lucitanib rights in Europe and the rest-of-world markets, excluding China, to Les Laboratoires Servier. Clovis holds exclusive rights for lucitanib in the U.S. and Japan, and will collaborate with Servier on the global clinical development of lucitanib. Under the terms of the deal, Clovis is acquiring EOS for an up-front payment of $200 million, which includes $190 million in Clovis common stock and $10 million in cash. Clovis will pay an additional $65 million in cash upon the initial approval of lucitanib by the U.S. Food and Drug Association.

Pursuant to the license agreement with Servier, Clovis is entitled to receive up to €350 million (about $470 million) upon the achievement of development and commercial milestones, as well as royalties on sales of lucitanib in the Servier territories. Clovis will also pay the EOS shareholders up to an additional €115 million in cash (about $155 million) upon the receipt by Clovis of certain of the milestone payments pursuant to the Servier license agreement.

Clovis and Servier will collaborate on the development of lucitanib pursuant to a mutually-agreed upon global development plan. Servier is responsible for the initial €80 million (about $108 million) of costs under the global development plan and costs above €80 million will be shared equally between the companies.