Janssen pays milestone fee to Pharmacyclics for cancer drug

Janssen has paid a milestone fee to partner Pharmacyclics based on the developmental progress of a new cancer therapy.

The company will pay $50 million (31.55 million pounds) to Pharmacyclics after a fifth patient was enrolled for the Spark trial, which will assess the compound ibrutinib among patients with relapsed or refractory mantle cell lymphoma (MCL).

Pharmacyclics and Janssen have been working together on the development of the drug since December 2011, with the total value of the agreement in upfront and milestone payments potentially extending to $975 million.

Should the treatment be successfully commercialised, Pharmacyclics would lead US sales activities, while Janssen would handle its distribution elsewhere in the world.

Bob Duggan, chairman and chief executive officer of Pharmacyclics, said: "The speed at which we have moved into important clinical trials in chronic lymphocytic leukaemia and now MCL is a validation of this joint venture's ability to convert plans into actualities."

Earlier this month, Janssen welcomed news that its prostate cancer drug Zytiga has received a recommendation from the Scottish Medicines Consortium, overturning an earlier rejection.