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Onyx Pharmaceuticals Acquires Option to License Novel Highly Specific JAK2 Inhibitors From S*BIO
Date:1/6/2009

EMERYVILLE, Calif., Jan. 6 /PRNewswire-FirstCall/ -- Onyx Pharmaceuticals, Inc. (Nasdaq: ONXX) today announced that it has acquired an option to license rights to SB1518, an orally available, potent, and selective inhibitor of Janus Kinase 2 (JAK2), and SB1578, also a JAK2 inhibitor, from S*BIO Pte Ltd based in Singapore. Under the terms of the agreement, Onyx has obtained option rights to exclusively develop and commercialize SB1518 (designated by Onyx as ONX 0803) and SB1578 (designated by Onyx as ONX 0805) for all potential indications in the United States, Canada, and Europe. S*BIO will retain responsibility for all development costs prior to option exercise, after which Onyx will assume development costs for the U.S., Canada, and Europe subject to S*BIO's option to fund a portion of the development costs in return for enhanced royalties on any future product sales. Upon option exercise for each compound, S*BIO will receive a one-time fee, milestones upon achievement of certain development and sales triggers and royalties on future product sales. Under the terms of the agreement, in December 2008, Onyx made a $25 million payment to S*BIO, including an up-front payment and an equity investment. After recognizing R&D expense related to the S*BIO transaction, Onyx continues to anticipate profitability for the full year 2008 on a non-GAAP basis, excluding stock-based compensation.

"JAK2 is implicated across a broad range of difficult-to-treat illnesses, including cancer and autoimmune diseases, and is one of the most exciting potential new targets in cancer therapy today. These compounds fit with our vision of exploring cutting-edge therapies with broad potential utility," said N. Anthony Coles, M.D., president and chief executive officer of Onyx. "This transaction exemplifies our approach of expanding our product portfolio through deals
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SOURCE Onyx Pharmaceuticals, Inc.
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