Novacea and Schering-Plough enter into Asentar partnership

Novacea and Schering-Plough will work together regarding the development and commercialisation of Asentar following the announcement of a new partnership.

The collaboration will see Novacea receive a payment of $60 million (30.08 million pounds), which includes past research and development expenses, and a license fee of $25 million.

It also incorporates a commitment by Schering-Plough to purchase $12 million of Novacea common stock “at a predetermined price within ten days of the closing”.

Moreover, Schering-Plough will finance forward investigations which study indications of the earlier stages of prostate cancer.

“A corporate partnership has been a significant corporate goal for 2007 and we are proud to be co-developing Asentar with a highly-respected pharmaceutical company such as Schering-Plough,” said John Walker, Novacea’s chairman and interim chief executive officer.

“The partnership leverages Novacea’s existing capabilities with Schering-Plough’s experienced development, regulatory and commercial teams and will provide Novacea with an opportunity to support the commercialization of Asentar in the United States.”

The agreement provides substantial funding which can go towards the continued development of Novacea’s operations, he added.

Last month, Schering-Plough presented information it had gathered following studies into therapies for hepatitis.