Tyme Technologies Inc. and Eagle Pharmaceuticals Inc. entered a $20 million cash-and-stock deal to co-promote Tyme's SM-88 therapy aimed at treating advanced cancers in the U.S.
New York-based Tyme's SM-88 is an experimental compound believed to disrupt protein synthesis of cancer cells, breaking down their key defenses and cell death.
In clinical trials, oral SM-88 has demonstrated complete or partial responses across 15 different cancers, including pancreatic, prostate, sarcoma, breast, lung and blood cancers with minimal adverse events.
Under the agreement, Tyme will receive a $20 million up-front cash payment for 10 million restricted shares of its common stock at $2 per share.
In addition, Tyme will receive $20 million in a milestone payment upon the successful completion of the first of the following three events to occur: meeting the main goal of overall survival in its TYME-88-Panc pivotal trial; meeting the primary endpoint of overall survival in the PanCAN Precision Promise SM-88 registration arm; or the U.S. Food and Drug Administration approval of SM-88 in any cancer.
The milestone payment would be split into a $10 million cash payment and a $10 million investment in Tyme at a 15% premium to the then-prevailing market price. Eagle's shares will be restricted from sale until the earlier of three months after the milestone event or the deal's three-year anniversary.
Woodcliff Lake, N.J.-based Eagle will tackle 25% of the promotional sales effort for SM-88 and receive 15% of the net U.S. revenues. Tyme will handle the rest of the promotional effort, as well as the development, regulatory approval, commercial strategy, marketing, reimbursement and manufacturing of the drug.
Tyme retains the remaining 85% of net U.S. revenues and reserves the right to repurchase Eagle's co-promotion right for $200 million.