Human Genome Sciences inks cancer drug deal

Drug developer Human Genome Sciences Inc. said Wednesday it has agreed with FivePrime Therapeutics Inc. to develop and bring to market a drug for treating several types of cancer.

The drug, discovered by FivePrime and dubbed FP-1039, is being used to treat a variety of cancers in clinical trials.

Under the terms of the agreement between the two companies, Human Genome Sciences received exclusive rights to develop and commercialize the drug in the U.S., Canada and European Union.

South San Francisco, Calif.-based FivePrime will retain minority co-promotion rights in the U.S. and full rights in Asia and other territories outside Human Genome Sciences' scope of rights under the deal.

Human Genome Sciences agreed to pay FivePrime an upfront license fee of $50 million. FivePrime also is eligible to receive up to $445 million in future development, regulatory and commercial milestone payments.

The deal also calls for tiered double-digit percentage royalty payments on net sales.

Shares in Human Genome Sciences were unchanged in aftermarket trading after slipping 17 cents to $27.41 during the regular session.