Wragge & Co LLP Life Sciences team has advised Astex Therapeutics Limited on a landmark $500 million drug discovery alliance with Janssen Pharmaceutica N.V. Under the agreement, both parties will focus on research, development and commercialisation of novel drugs for cancer treatment.

Astex has granted Janssen a worldwide exclusive licence to compounds arising from its novel fibroblast growth factor receptor inhibitor programme. The parties are to establish a new drug discovery alliance focused on two further cancer drug targets. Janssen has committed an upfront payment, including cash, equity and research funding, totalling $37.4 million. Total payments under the collaboration, excluding royalties, could be worth over $500 million to Astex, assuming one compound from each programme is commercialised in all territories.

Wragge & Co's head of life sciences Patrick Duxbury advised on the alliance arrangement, with partner Kevin Jones and solicitor Chris Towle advising on the equity issues. The team worked closely with Astex's Martin Buckland, chief business officer, John Aston, chief financial officer and Lyn Leaper, vice president of intellectual property.

Patrick Duxbury said: "Technical expertise and a partner-led service mean we have a really strong relationship with Astex. We are pleased to be involved in another landmark agreement for this exciting company."

Astex is a UK-based biotechnology company that discovers and develops novel small molecule therapeutics. Using its pioneering fragment-based drug discovery platform Pyramid™, it has built a pipeline of five molecularly-targeted oncology drugs. The company is financed by leading blue-chip US and European investors including Abingworth, Alta Partners, Advent International, GIMV, Oxford Bioscience Partners, Bayer-Schering and Novartis. Wragge & Co has previously advised Astex on its collaborations with Novartis, AstraZeneca and others.

Wragge & Co's 16-lawyer Life Sciences team delivers a unique mix of IP, corporate, antitrust, regulatory and dispute resolution advice to key players in the sector. It acts for a broad range of clients, from start-ups to multinationals, on a growing number of high-profile, cross-border transactions and patent litigation cases. Clients include Astex Therapeutics, the Medical Research Council, Inverness Medical Innovations, MedImmune, Eisai, PanGenetics, Chroma Therapeutics and 3i.

On 1 May, Wragge & Co boosted its life sciences practice with the appointment of Dr Luke Kempton as a partner. With significant expertise in life sciences litigation and transactions, Luke will be a major force in driving forward the life sciences practice.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 685 2785, Amie Ryalls on +44 (0)121 685 2708 or Rebecca Davies on +44 (0)121 685 3819

This press release may contain information of general interest about current legal issues, but does not give legal advice.