OncoGenex Pharmaceuticals to pay Isis Pharmaceuticals $10M for license of OGX-011 to Teva Pharmaceutical Industries

Isis Pharmaceuticals, Inc. (Nasdaq: ISIS) today announced that it will receive a $10 million payment from OncoGenex Pharmaceuticals, Inc. (Nasdaq: OGXI) as a result of OncoGenex' license of OGX-011 to Teva Pharmaceutical Industries Ltd. ( TEVA). OGX-011 is a second-generation antisense drug co-discovered by Isis and OncoGenex that has completed a successful Phase 2 program in patients with advanced prostate cancer and advanced non-small cell lung cancer. Teva and OncoGenex will collaborate on a global Phase 3 clinical program for OGX-011 in patients with prostate and non-small cell lung cancer.

"We are pleased with OncoGenex' selection of Teva Pharmaceuticals, a leading pharmaceutical company, as a partner to complete the development and commercialization of OGX-011. OGX-011 will be the second antisense drug to enter Phase 3 development from our second-generation antisense technology. We are encouraged by the Phase 2 results of OGX-011 presented earlier this year in patients with advanced prostate cancer and look forward to the drug progressing into a broad Phase 3 program," said B. Lynne Parshall, COO and CFO of Isis Pharmaceuticals. "2009 has been an eventful year for Isis' satellite companies, continuing to affirm our strategy of maximizing the value of our antisense drug discovery platform with both traditional and unique partnerships. Not only do these relationships provide continuing short-term benefit, but, as drugs move forward in the hands of capable partners, they promise significant benefit to patients and more significant financial rewards to Isis in the future."

Under the terms of OncoGenex' agreements with Teva, Isis will receive $10 million of the upfront monies paid. This constitutes 30% of the $20 million license fee and 30% of the premium on Teva's equity investment in OncoGenex as well as a portion of the $30 million prepaid development costs that OncoGenex will subsequently contribute to the development of OGX-011. Isis will also receive 30% of the up to $370 million in milestone payments OncoGenex is eligible to receive in addition to 5.5 - 7% royalties on all sales of OGX-011.