Oncothyreon Announces Exclusive License Deal With Array BioPharma For ONT-380

(RTTNews) - Oncothyreon Inc. (ONTY) announced that Array BioPharma Inc. (ARRY) has granted Oncothyreon an exclusive license to develop, manufacture and commercialize ONT-380 (ARRY-380), an orally active, reversible and selective small molecule HER2 inhibitor. The license deal replaces the prior Development and Collaboration Agreement under which Oncothyreon and Array were jointly developing ONT-380.

Pursuant to the agreement, Oncothyreon will pay Array $20 million as an upfront fee. In addition, Oncothyreon will pay Array a significant portion of any payments received from sublicensing ONT-380 rights. If Oncothyreon is acquired within three years of the effective date of the current agreement, Array will be eligible for up to $280 million in commercial milestone payments. Array is also entitled to receive up to a double-digit royalty based on net sales of ONT-380.