Clovis Oncology in $200M cancer drug deal

BOULDER, Colo. (AP) -- Clovis Oncology said Tuesday it bought privately held Italian biopharmaceutical company Ethical Oncology Science SpA, gaining the U.S. marketing rights to a cancer drug the company is developing.

Clovis said it is paying $200 million upfront. That includes $10 million in cash and $190 million in stock, or 3.7 million shares. The deal gives it the U.S. and Japanese rights to lucitanib, a drug in mid-stage clinical testing. It will pay $65 million more if the Food and Drug Administration approves lucitanib. The drug is being studied as a treatment for breast cancer and Clovis said patients with other cancers, like kidney and thyroid tumors, have also responded to treatment.

Ethical Oncology Sciences has a previous partnership with Laboratoires Servier, which holds the rights to lucitanib in most other countries. Clovis said Servier will cover most research and development expenses related to the drug over the next two to three years.

Clovis said it could get another 350 million euros ($473 million) in development and sales milestone payments from Servier, and it would also receive royalties on sales. It would pay about 115 million euros to Clovis shareholders if some of those milestones are achieved.

Shares of Clovis Oncology Inc. fell 3.3 percent to $46.76 on Tuesday and rose 19 cents to $46.95 in aftermarket trading.