OPKO Health signs agreement with Schering-Plough to acquire assets relating to NK-1 program

Oct 14 2009

OPKO Health, Inc. (NYSE Amex:OPK) today announced that it has entered into a definitive agreement with Schering-Plough Corporation (NYSE: SGP) (“Schering-Plough”) to acquire assets relating to Schering’s neurokinin-1 (NK-1) receptor antagonist program. Rolapitant, the lead product, recently completed Phase II clinical testing for prevention of nausea and vomiting related to cancer chemotherapy and surgery, and other indications. Phase 1 clinical testing has also been initiated for a second compound in the same class. It is anticipated that these compounds may have advantages over presently marketed products.

“We are pleased to acquire these assets from Schering-Plough,” said Phillip Frost, M.D., OPKO’s Chairman and Chief Executive Officer. “They will fit in well with our strategy to create a portfolio of important products that will bring significant value to patients and shareholders.”

In connection with its pending merger with Merck & Co., Inc., Schering-Plough determined to divest its oral and intravenous formulations of rolapitant and other assets in its NK-1 program. Closing of the transaction between OPKO and Schering-Plough is subject to completion of the merger.

NK-1 receptors are highly concentrated in the brain and are also found in other tissues of the body. Activation of NK-1 receptors leads to the release of neurotransmitters and other signaling molecules that play a central role in controlling nausea and vomiting and other basic functions. Jamie Freedman, M.D., Ph.D., Executive Vice President of Research & Development at OPKO commented, “The profile of rolapitant and the positive clinical data generated so far are very promising. We believe rolapitant has the potential to be a best-in-class product for preventing nausea and vomiting in the post-surgical setting or induced by cancer chemotherapy drugs. We will also be exploring various other uses of rolapitant.”

The market for nausea and vomiting drugs is estimated to be in excess of $2 billion in the U.S., alone. NK-1 receptor antagonists and 5-HT3 receptor antagonists are major classes of drugs used for prevention of nausea and vomiting, and, while there are several approved 5HT-3 receptor antagonists, there is only one NK-1 receptor antagonist approved for commercial use, aprepitant (Emend^®).

Source: OPKO Health, Inc.