Protox Therapeutics signs US$75 million license agreement with Kissei

On April 29, 2010, Protox Therapeutics Inc. (TSX: PRX), a leader in the development of receptor targeted fusion proteins, announced that it had entered into an exclusive US$75 million license agreement with Kissei Pharmaceutical Co., Ltd. for the development and commercialization of its PSA-activated pro-drug, PRX302, in Japan for BPH, prostate cancer and other diseases of the prostate. Protox retains exclusive rights to PRX302 in all other territories. Under the terms of the agreement, Protox will receive an upfront payment of US$3 million and is eligible to receive a near term milestone payment of US$5 million, as well as progressive payments of up to US$67 million upon achievement of specific development, regulatory and commercial milestones. In addition Protox will receive a double-digit royalty fee plus a drug supply fee based on product sales. Kissei will be responsible for all costs associated with further development, regulatory approvals, commercialization and marketing of PRX302 in Japan.Protox was advised in the negotiation of this agreement by Fasken Martineau with a team that included Roger Kuypers, Iain Mant and Gloria Hsi.