On August 13, 2001, QLT Inc. entered into an exclusive development and license agreement for XR9576, a Phase II P-gp inhibitor for multi-drug resistance (MDR)in oncology with Xenova Group plc, a publicly traded biotechnology company based in the UK. Under the agreement QLT will assume responsibility for the continued development of XR9576 in North America and Europe and will have marketing rights for North America. Xenova will retain development rights in the rest of the world and marketing rights in Europe and the rest of the world.
Under the terms of the agreement, QLT made an immediate up-front license payment of US$10 million to Xenova and will expend up to US$45 million in funding for all development activities related to Phase III clinical studies for XR9576 in North America and Europe. Milestone payments of up to US$50 million and royalties in the range of 15 to 22 per cent depending on the level of North American sales are also receivable by Xenova.
OLT's legal team was led by its Vice-President, Business Development and Legal Affairs, Celia Courchene and Hector MacKay-Dunn of Farris, Vaughan, Wills & Murphy. Xenova was represented by Mark Anderson of Anderson & Company in London.