Summary
Vertex Pharmaceuticals Incorporated (VRTX) has announced an amendment to its Research, Development and Commercialization Agreement with Cystic Fibrosis Foundation Therapeutics Incorporated (CFFT). This amendment extends their collaboration focused on discovering corrector compounds for cystic fibrosis. The key development is an additional $22 million in funding from CFFT to Vertex, supporting research activities through March 31, 2008. This funding underscores CFFT's continued commitment to the project and provides Vertex with significant resources for its ongoing research efforts in this critical therapeutic area. While the extended funding is a positive step, investors should note the terms regarding CFFT's termination rights. CFFT can end the collaboration without cause on June 30, 2006, and June 30, 2007, with 60 days' notice. Vertex retains the rights to develop and commercialize any compounds discovered, subject to royalty payments to CFFT on net sales. A milestone payment is also stipulated for the advancement of a compound into clinical development, aligning incentives for future success.
Key Highlights
- 1Vertex Pharmaceuticals amended its R&D agreement with Cystic Fibrosis Foundation Therapeutics (CFFT).
- 2CFFT will provide an additional $22 million in funding to Vertex.
- 3The collaboration focuses on researching corrector compounds that modulate the cystic fibrosis transmembrane conductance regulator protein.
- 4The research program is extended through March 31, 2008.
- 5Vertex retains the rights to develop and commercialize any discovered compounds.
- 6Vertex will pay royalties to CFFT on net sales of any drugs discovered through the collaboration.
- 7CFFT has the right to terminate the collaboration without cause on specific dates (June 30, 2006, and June 30, 2007).