Baxter agrees EU licensing deal for Onconova cancer drug

Baxter has obtained European commercialisation rights for rigosertib, a novel targeted anti-cancer compound from Onconova that is currently undergoing phase III testing.

The drug is being assessed as a potential therapy for a group of rare haematologic malignancies called myelodysplastic syndromes in a phase III trial, while a separate phase II/III study is evaluating it for pancreatic cancer.

Baxter will pay an upfront fee of $50 million (30.91 million pounds) to Onconova to secure the rights to the drug, with further milestone-based fees totalling a potential $515 million also agreed.

This new drug will complement the company's existing portfolio of therapies for rare haematologic conditions.

Dr Ludwig Hantson, president of Baxter's bioscience business, said: "Our collaboration with Onconova will allow us to further expand our pipeline and extend our legacy in disease areas with critical needs."

Earlier this month, the company announced that it has applied for US regulatory approval of BAX 326, a recombinant factor IX protein for the treatment of haemophilia B.