Wednesday, October 12, 2011

Onyx drops cancer drug suit against Bayer in return for $160M payment

Onyx Pharmaceuticals Inc. will drop litigation against its partner Bayer for a payment of $160 million and payment of possible royalties and other money in the future.
In exchange, South San Francisco-based Onyx (NASDAQ: ONXX) dropped all its claims against Bayer Corp., Bayer AG, Bayer Healthcare LLC and Bayer Schering Pharma AG in a fight over a cancer treatment.
Technically, Bayer is paying the $160 million for rights to sell Nexavar (sorafenib), a cancer drug, in Japan, without paying royalties to Onyx. Depending on how the drug is priced in Japan, Bayer might pay Onyx $15 million more in 2012 to 2013.

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