Summary
Vertex Pharmaceuticals Inc. (VRTX) filed an 8-K on March 22, 2006, reporting a significant development in its collaboration with the Cystic Fibrosis Foundation Therapeutics Inc. (CFFT). The company entered into a Second Amendment to their existing Research, Development, and Commercialization Agreement, primarily focusing on the advancement of the drug candidate VX-770 for cystic fibrosis treatment. This amendment outlines CFFT's commitment to contribute up to $13.3 million towards specified development costs for VX-770 through the end of 2007. While CFFT has conditional termination rights for its funding obligations on specific dates in 2006 and 2007, Vertex retains worldwide development and commercialization rights for VX-770. The agreement also stipulates royalty payments to CFFT on any future net sales of the drug, indicating a shared interest in the successful commercialization of this important therapy.
Key Highlights
- 1Vertex Pharmaceuticals amended its agreement with Cystic Fibrosis Foundation Therapeutics (CFFT) regarding the drug candidate VX-770.
- 2CFFT will contribute up to $13.3 million towards specified development costs for VX-770.
- 3The funding from CFFT is earmarked for development costs incurred through the fourth quarter of 2007.
- 4CFFT retains the right to terminate its funding obligation prospectively on December 31, 2006, or June 30, 2007, with 60 days' notice.
- 5Vertex Pharmaceuticals retains worldwide development and commercialization rights for VX-770.
- 6Vertex will pay royalties to CFFT on any future net sales of VX-770.